Greece will not call for a write-off of its debt but rather request a "menu of debt swaps," to ease the burden, including two types of new bonds, new Finance Minister Yanis Varoufakis told the Financial Times (FT) yesterday (2.02), after meeting with UK chancellor of the exchequer George Osborne in London.

According to the financial daily, Greece "revealed proposals for ending the confrontation with its creditors by swapping outstanding debt for new growth-linked bonds, running a permanent budget surplus and targeting wealthy tax-evaders.

The first type of new bond - indexed to nominal economic growth - would replace European rescue loans, and the second - which Varoufakis called “perpetual bonds” - would replace European Central Bank-owned Greek bonds.

The finance minister said the government would maintain a primary budget surplus - after interest payments - of 1 to 1.5% of gross domestic product, even if this meant Syriza, the leftwing party that dominates the ruling coalition, would not fulfill all the public spending promises on which it was elected.

See also FT: Greece finance minister reveals plan to end debt stand-off