The European Central Bank is negotiating with Greece on behalf of its member central banks to exempt the Greek bonds in their investment portfolios from a debt restructuring. The ECB wants to swap the investment portfolio bonds for debt that is exempted from collective action clauses to avoid losses in a private-sector debt restructuring. The central bank has already swapped Greek bonds it bought as part of its asset-purchase program for such securities. Greece wants the bonds in the central banks' portfolios to be included in a private-sector deal aimed at slicing EUR100bn (US$132bn) off its debt. The central banks are arguing they would have dumped the bonds if they were normal investors and that they should not be forced to take losses on them. (Bloomberg)