As talks between the Greek government and private bond holders resumed on Friday for the third straight day, Reuters reported that an initial breakthrough in talks might be in place according to people close to negotiations.

Reuters reported that an initial deal with the private bond holders on Friday was reached and to be followed by negotiations over the technical details over the weekend according to the sources.

The deal will prevent Greece from an outright disorderly default which was the original plan when endorsed by the EU leaders and will be followed by a new cash bailout for the debt-laden nation once the talks have been finalized.

Initially bond holders went into negotiations to accept 50% haircut on their debt holding and according to the current negotiations Reuters quoted a banking official also close to the negotiations saying that the real impact will be around 65 to 70 percent loss and that the new 30-year bonds coupons that had the initial disagreement will average around 4.0%.