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Rehn: Greece debt deal within 'touching distance'

27 January 2012 Last updated at 13:07 GMT

Greece is within touching distance of a deal with private banks to write down its debt, according to the European Commissioner responsible for Monetary Affairs, Olli Rehn.

He hoped a deal would be done by the EU summit that takes place on Monday.

Speaking at the World Economic Forum in Davos, he said an agreement, which would avoid a debt default would be concluded if not today, then over the weekend.

Greece and its private creditors have so far failed to agree to reduce the existing debt to help Greece avoid bankruptcy.