The news came as the Greek government fought to persuade backbench rebels to back a crucial austerity plan to avert bankruptcy. With financial markets watching the Greek crisis anxiously, Sarkozy told a news conference in Paris that the French authorities had reached an agreement with the banks on a voluntary rollover of maturing bonds. 'We concluded that by stretching out the loans over 30 years, putting (interest rates) at the level of European loans, plus a premium indexed to future Greek growth, that would be a system that each country could find attractive,' he said. Banking sources confirmed that was part of an outline deal under which banks would reinvest 70% of the proceeds when Greek bonds fall due. Of that amount, 50% would go into the new 30-year bonds and 20% would be reinvested in a zero-coupon guaranteed fund based on high-quality securities. Euro zone sources said EU officials were discussing the French idea with international bankers and the Institute of International Finance (IIF) in Rome today. German banks also voiced interest in the 'French model'. Any new financial rescue for Athens, including official lending and private sector participation, depends on the Greek parliament's approval this week of a five-year austerity plan and legislation to implement structural reforms and privatisations. Greek Finance Minister Evangelos Venizelos was meeting ruling socialist party (PASOK) rebels in Athens to push them to toe the line in parliamentary votes on Wednesday and Thursday, where a defeat could plunge the country into default. Greece's conservative opposition has rejected calls for national unity, forcing Prime Minister George Papandreou to rely on his slim parliamentary majority to push through a painful mix of spending cuts, tax hikes and state sell-offs. But with Greece stuck in deep recession, at least three PASOK deputies have expressed serious reservations or outright opposition to a plan they say will crush any hope of growth for years to come. Without parliamentary approval for the measures, which have caused a wave of strikes and demonstrations, the EU and International Monetary Fund say they will not release the fifth tranche of the €110 billion bail-out agreed last year.