Friday, March 9, 2012

More Greek Creditors Back Swap

Wall Street Journal
March 8, 2012

More than 75% of Greece's private-sector creditors have pledged to take part in Greece's €200 billion ($262.98 billion) debt swap, according to a Greek government official.

The government official, speaking hours before Thursday's deadline for bondholders to make their intentions known, said participation as of Wednesday had reached 75%. A Greek cabinet minister late Thursday said the participation was "around 80%."

Those high numbers indicate that Greece will go ahead with the restructuring—the largest-ever sovereign-debt default and the first for a Western European country in half a century. It also can employ so-called collective-action clauses to bind in some of the reluctant creditors.

Speaking in Rio de Janeiro, Charles Dallara, managing director of the Institute of International Finance, a lobby group for the world's largest banks, expressed optimism that participation among bondholders will be "very, very high."

Mr. Dallara negotiated for creditors in the deal.

The final tabulation is due to be released at 8 a.m. Athens time on Friday.


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