Greece has just completed details of the largest sovereign bail out in history that will restructure about $264 billion of debt. But, there could still be some fall out. Dow Jones's Martin Essex and Costas Paris discuss the details. Photo: Reuters
Just over 80% of Greece's private-sector creditors had agreed by a Thursday evening deadline to turn in their bonds for new ones with less than half the face value, touching off a massive debt swap that marks a seminal moment in Europe's long-frustrated efforts to rescue its most financially vulnerable nation.
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The Greek government announced the results of its proposed restructuring early Friday morning. It said 83% of bondholders had voluntarily submitted to the deal, and that it would invoke so-called collective-action clauses to impose the exchange on most of the rest, bringing participation up to 96%.
The announcement that the restructuring will go ahead precipitates the largest-ever sovereign-debt default and the first for a Western European country in half a century.
Greece had proposed €206 billion ($273 billion) in bonds for the exchange. Just over €100 billion will be sliced from the amount Greece owes... read more.
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