By Simon Miller

Greece has extended its deadline for foreign-law backed bonds to 4 April, the Eurogroup President Jean-Claude Juncker.

Although rumoured last week, Juncker confirmed the move in a statement tis afternoon (30.03.2012).

He said the decision was taken with a view to "provide bondholders a further opportunity to tender their holdings of eligible foreign-law bonds in the exchange".

Juncker added: "The Eurogroup continues to believe that the terms described in the Greek authorities' invitation to bondholders launched on 24 February include unique elements provided by the official sector, which make the bond exchange particularly attractive as compared to possible

In addition, he said the Eurogroup had been informed that a failure to make timely payment of Greece's eligible foreign law bonds that are not exchanged did not constitute an event of default under Greece's new
bonds issued in the exchange.

The Eurogroup reconfirmed that the PSI and Bond Interest facilities expire on 30 April 2012.

Meanwhile, Greek prime minister Lucas Papademos the country may need a third bailout package if the austerity measures and a cut of €12bn (€10bn) by 2014 does not work.

He told Italian newspaper Il Sole 24: "Greece will do everything possible to make a third adjustment program unnecessary. Having said that, markets may not be accessible by Greece even if it has implemented fully all measures agreed on."

Papdemos added: "It cannot be excluded that some financial support may be necessary, but we must try hard to avoid such an outcome."

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