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FIRST ON CNBC: CNBC TRANSCRIPT: CNBC’S CHIEF INTERNATIONAL CORRESPONDENT MICHELLE CARUSO-CABRERA SPEAKS WITH CHARLES DALLARA, MANAGING DIRECTOR OF THE INSTITUTE OF INTERNATIONAL FINANCE, TODAY ON CNBC

WHEN: TODAY, TUESDAY, JANUARY 24TH

WHERE: CNBC’S “SQUAWK ON THE STREET

Following is the unofficial transcript of a FIRST ON CNBC interview with Charles Dallara, Managing Director of the Institute of International Finance, today on CNBC’s “Squawk on the Street.” All references must be sourced to CNBC.

Video:Charles Dallara: Greek Debt Deal Can Be Reached

CARUSO-CABRERA: THANKS VERY MUCH FOR THIS. CHARLES DALLARA IS ON THE PHONE WITH US LIVE FROM ZURICH HE’S THE HEAD OF THE INSTITUTE FOR INTERNATIONAL FINANCE SPEAKING TO CNBC FIRST ON THE STATUS OF THE GREEK DEBT DEAL. THANK YOU FOR JOINING US.

DALLARA: GOOD MORNING, MICHELLE. NICE TO BE WITH YOU.

CARUSO-CABRERA: SO YOU HAVE GIVEN YOUR LAST BEST FINAL OFFER TO THE GREEKS WHEN IT COMES TO THE GREEK DEBT RESTRUCTURING BUT THE EUROPEAN FINANCE MINISTER HAVE MADE VERY CLEAR THEY SAID THANKS BUT NO THANKS. NOW WHAT DO YOU DO?

DALLARA: WELL, THERE'S NOT BEEN ACTUALLY THERE WAS NOT AN OFFICIAL STATEMENT ISSUED OUT OF THE EUROZONE FINANCE MINISTERS LAST NIGHT, MICHELLE. BUT OUR POSITION REMAINS WHAT IT HAS BEEN. WE REMAIN COMMITTED TO A VOLUNTARY ACCORD. WE PUT AN OFFER ON THE TABLE WHICH IS CONSISTENT WITH THE LIMITS OF VOLUNTARY AGREEMENT AND WE REMAIN HOPEFUL THAT THROUGH SHOULDERING OF THE BURDEN BY ALL PARTIES HERE THAT AGREEMENT CAN BE REACHED.

CARUSO-CABRERA: THE DISCUSSIONS HAVE FOCUSED ON, AND THE REPORTING INDICATES, MY REPORTING INDICATES IT COMES DOWN TO THE INTEREST RATE THAT GREECE WOULD PAY ON THE FUTURE DEBT SOMEWHERE BETWEEN 3.5% TO 4%. ARE YOU WILLING TO GO BELOW 4% FOR THE AVERAGE INTEREST RATE OVER THE NEXT 30 YEARS?

DALLARA: WELL, I'M NOT GOING TO COMMENT, MICHELLE, I'M SURE YOU CAN UNDERSTAND FOR GOOD REASONS WHY. WE HAVE PUT AN OFFER ON THE TABLE. OUR POSITION IS CLEAR. AND I WOULD SAY THAT THERE ARE BROADER ISSUES AT STAKE HERE. GREECE'S DEBT IS GOING TO BE A FUNCTION OF A LOT OF FACTORS DOWN THE ROAD. HOW THE OFFICIAL HOLDERS, PLEASE REMEMBER THAT WE ONLY HOLD, THE PROFIT CREDITORS ONLY HOLD 60% OF GREECE'S DEBT. 40% IS IN THE HANDS OF THE OFFICIAL SECTOR. SO FOR THOSE WHO ARE STRIVING TO ACHIEVE A CERTAIN LEVEL OF DEBT TO GDP AT A CERTAIN POINT IN TIME, THERE IS A BROADER ISSUE HERE. HOW DOES ONE DISTRIBUTE THE BURDEN OF MANAGING GREECE'S DEBT ON THE VOLUNTARY BASIS? ALSO, THERE IS A FUNDAMENTAL ISSUE OF THE GROWTH OUTLOOK FOR THE GREEK ECONOMY. AND I CONTINUE TO REMAIN OF THE VIEW THAT IT'S IMPORTANT TO RECOGNIZE THAT WHAT'S SUCCESSFUL TO REFORMS, IT IS CERTAINLY VERY POSSIBLE THAT THE GREEK ECONOMY CAN REVIVE AND ACHIEVE SOME GROWTH OVER THE YEARS AHEAD.

CARUSO-CABRERA: SHOULD I READ INTO YOUR EARLIER COMMENTS THAT WHEN YOU TALK ABOUT THE OFFICIAL SECTOR OR TALKING A LOT ABOUT THE EUROPEAN CENTRAL BANK THAT YOU THINK THAT THEY SHOULD ALSO TAKE A HAIR CUT ON THEIR DEBT AS WELL?

DALLARA: I'M NOT GOING TO COMMENT SPECIFICALLY ON ANY INSTITUTION. I'M SIMPLY GOING TO POINT OUT THAT WE HOLD 60% OF 350. SO SOMEBODY IS HOLDING THE OTHER 150.

CARUSO-CABRERA: HOW MANY BOND HOLDERS CAN YOU BRING TO THE TABLE? WE HEAR FROM HEDGE FUNDS WHO SAID THE IIF DOESN'T SPEAK FOR US. IF YOU DO REACH A DEAL THAT YOU THINK IS ACCEPTABLE TO THE INSTITUTIONS, YOU REPRESENT THE BANKS, HOW MANY BOND HOLDERS DO YOU THINK YOU CAN ACTUALLY BRING WHEN IT COMES TO PARTICIPATION LEVELS?

DALLARA: MICHELLE, I'M ACTUALLY QUITE CONSTANT THAT IF WE CAN REACH A VOLUNTARY ACCORD I'M CONFIDENT WE CAN MOBILIZE VERY HIGH PARTICIPATION. OF COURSE THERE ARE INDIVIDUAL INVESTORS WHETHER HEDGE FUNDS OR FAMILY INVESTMENT UNITS OR DIFFERENT SORT OF INVESTORS THAT MAY NOT BE NECESSARILY UNDER OUR UMBRELLA. EVERY FIRM WILL HAVE TO MAKE THEIR OWN CHOICE ABOUT PARTICIPATION IN THIS. I DO KNOW THAT WE'RE WORKING VERY CLOSELY WITH THE BULK OF THE CREDITORS. AND THEY'RE PART OF OUR GROUP AND THEY ARE GIVING US THE GUIDANCE THAT WE NEED TO REPRESENT THEIR INTEREST. AND I'LL FEEL CONFIDENT THAT IF AN AGREEMENT IS REACHED ON THEIR BEHALF THAT PARTICIPATION WILL BE SUBSTANTIAL. I'M NOT TERRIBLY CONCERNED ACTUALLY ABOUT INDIVIDUAL CREDITORS EXPRESSING VIEWS AT THIS STAGE. THAT IS THEIR PREROGATIVE AND RIGHT. THEY MAY CHOOSE THEIR OWN COURSE. MY GOAL IS TO REACH A VOLUNTARY ACCORD AND THEN TO IMPLEMENT IT IN A COOPERATIVE FASHION WITH THE GREEK AND EUROPEAN AUTHORITIES.

CARUSO-CABRERA: DAVID FABER IS JOINING US AS WELL ON THIS INTERVIEW, MR. DALLARA.

FABER: THANK YOU. I'M JUST CURIOUS. OF YOUR GROUP HOW MANY DO YOU KNOW ARE HEDGED BY OWNING THE CREDIT DEFAULT SWAPS AND THEREFORE PERHAPS DON'T HAVE AS MUCH AT STAKE SHOULD THERE BE A FULL DEFAULT?

DALLARA: I THINK THAT IT WOULD BE A MISTAKE FOR ANY INSTITUTION TO THINK THAT THERE IS STAKE IN A DEFAULT OR IN A VOLUNTARY ACCORD IS DETERMINED BY THE AMOUNT OF THEIR EXPOSURE HEDGED OR UNHEDGED. ALL PLAYERS IN THE GLOBAL ECONOMY HAVE A HUGE STAKE IN THIS IN MY VIEW ESPECIALLY EUROPEAN GOVERNMENTS, THOSE COMMITTED TO THE STABILITY AND INTEGRITY OF THE EUROZONE, EUROPEAN FINANCIAL INSTITUTIONS. BUT ALL PLAYERS IN THE GLOBAL ECONOMY HAVE A STAKE IN THIS. WE DON'T TRY TO KEEP TRACK OF WHO EXACTLY HAS A HEDGE POSITION AND WHO DOESN'T. ALL THAT I KNOW IS THAT THOSE INVESTORS THAT ARE WORKING WITH US HAVE SHOWN EVERY -- AT EVERY TURN IN THE ROAD A COMMITMENT TO SEEK A VOLUNTARY ACCORD.

CARUSO-CABRERA: YOU TRULY THINK A VOLUNTARY ACCORD, THERE IS SOME PATH POSSIBLE TO A VOLUNTARY ACCORD THAT GETS ENOUGH PARTICIPATION?

DALLARA: WELL, YOU KNOW, IT TAKES ALL SIDES TO REMAIN COMMITTED. WE WERE COMMITTED ON OCTOBER 26th TO VOLUNTARY ACCORD AND REMAIN COMMITTED TO A VOLUNTARY ACCORD. I AM NOT ENTIRELY CLEAR AT THIS POINT THAT ALL PARTIES ARE COMMITTED TO A VOLUNTARY ACCORD. I CERTAINLY HOPE THAT IS THE CASE. I HOPE THAT WILL BECOME INCREASINGLY EVIDENT IN THE DAYS AHEAD.

CARUSO-CABRERA: MR. DALLARA, THANK YOU SO MUCH FOR YOUR TIME AND JOINING US IN A FIRST ON CNBC INTERVIEW IN THE MIDDLE OF THE GREEK DEBT EXCHANGE.

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