Greek Debt Deal on Track

Senior government sources were telling The New Athenian on Thursday evening that Greece has secured substantial participation in a massive debt restructuring. The level of that participation was close to 80 percent of the face value of privately held Greek bonds, the sources said. That is well above the two-thirds level the government was hoping to secure at an absolute minimum. Sixty-six percent is the participation level that will allow Greece to invoke Collective Action Clauses aiming to corce private lenders who did not participate in the scheme voluntarily. The government needs to ultimately secure inclusion of more than 90 percent of the 207 billion euros in debt held in private hands, in order to achieve a debt writeoff of about 100 billion euro. Anything below that jeopardises the EU-mandated goal of bringing Greek debt to within 120 percent of GDP over the next eight years.