Greek banks climb as debt deal inches closer

Greek banking stocks jumped 11.4% and outperformed European peers on Tuesday after European Union officials said Athens could strike a debt swap deal with its private creditors within days.
The index is up 72% in January, ending a six-month losing streak that had helped it fall 79% in 2011, to add to a 53% fall in 2010.
"The rally comes after European officials said the PSI (the private sector involvment scheme) will be concluded by the end of the week," said HSBC analyst Dimitris Haralabopoulos.
On the Athens Stock Exchange, National Bank of Greece closed up 14.6% at 2.75 euros, while Alpha Bank was up 22.6% at 1.52 euros, while EFG Eurobank lost 2.2% to close at 44 cents.
Bank of Cyprus closed at 77c on the ASE and 75.5c on the Cyprus Stock Exchange, up 15% from Monday and 23% for January. Marfin Popular Bank ended at 30c on the ASE and 39c on the CSE, up 11% on the day and 31% for the month. Hellenic Bank closed the month on the CSE at 36c, up nearly 6% but 0.3% down for the month.
Greece must make "difficult" decisions in the coming days to clinch a debt swap agreement and a 130 bln euro bailout package needed to avoid an unruly default, the government said on Tuesday.
Near-bankrupt Greece is struggling to convince sceptical lenders it can ram through spending cuts and labour reform to help bridge a funding shortfall driven by a worsening economic climate and its previous reform plan having veered off track.
With a long-awaited debt swap deal largely almost secured, Athens' focus is now squarely on the reform front. Failure to persuade lenders it can follow through on its pledges could put both the bond swap and the country's latest bailout at risk.