Resolving the issue of the Greek debt swap is considered key to keeping the Euro going for another few weeks. Under the terms of the deal, private investors will swap their current, unrepayable, Greek government bonds for some equally unrepayable bonds of lesser value. Private investors are expected to take a so-called "haircut" of between sixty and seventy percent.
However, these private investors, including hedge funds, are unwilling to take the haircut unless they can claw back some of it through the interest paid on the new bonds. It is this size of this interest rate that is the main sticking point. The new bonds are expected to be over 30 years, with an ever increasing interest rate, and it is the percentage that this will average out to which is the sticking point in the negotiations.
Private investors have said that their current proposals are their final offer, and European finance ministers will announce later today whether or not they can proceed on the basis of that offer.
They are also expected to announce the continued hyperinflationary pumping of funny money by the European Central banks, and to make the rather ridiculous statement that Greece is a unique situation, despite Portugal catching up rapidly.