Greek debt swap support close to 95%

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FINANCIAL TIMES:  The largest debt restructuring in history was heading for a successful outcome last night as Greece looked set to see a participation rate of close to 95 per cent for its €206bn bond exchange….

Once the CACs are triggered, all €177bn worth of bonds issued under Greek law – or 86 per cent of all Greek debt in private sector hands – will be swapped for a cash payment equivalent to 15 per cent of their original holding. They will also be issued new Greek debt worth 31.5 per cent of their old bonds. The two measures will wipe about €100bn from Athens’ €350bn debt pile and will leave investors with 24 new securities.

Greece said earlier this week that it would not pay any of the holdouts of its foreign law bonds, which together with some other bonds represent about 14 per cent of the total. People involved in the deal warned that despite the deal’s success there was still the possibility of lawsuits from hedge funds and other investors. “We don’t want to seem too victorious. Let’s remember Argentina suffered 10 years of litigation after its restructuring,” one said…  (more)

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  1. Anonymous

    Never a Lender Be !

    Here are ” Sovereign debt as a percentage of GDP “ figures for various countries , as provided by Times of India ( July 15 , 2011 ) :

     Japan …………………. 220 %

     Greece ……………….. 142 %

     Italy …………………….. 119 %

     Russia ………………….. 99 %

     Ireland ………………… 96.1 %

     USA ………………………… 91.6 %

     France …………………….. 84.3 %

     Canada …………………… 84 %

     Portugal …………………… 83.3 %

     Germany ………………… 80 %

     UK ……………………………. 77.2 %

     India ……………………….. 69.2 %

     Brazil …………………………66.1 %

     Spain ………………………….60.1 %

     Taiwan ……………………… 39.7 %

     S.Korea ………………………30.9 %

     S.Africa ……………………….35.7 %

     China ………………………. 17.7 %

    Greece just managed to avoid a default of re-payments to its private creditors by getting them to ” agree “ to write-off 59 % of the debt !

    Greece might have escaped going bankrupt by the skin of its teeth

    Question is :

    Will others be equally lucky ? Will the world see a financial meltdown ? Or , is it only a question of when ?

    Lenders , beware ! By lending recklessly ,you have become, the enemy # 1

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