Greek debt restructuring deal to go ahead, government announces

Published November 20, 2014

Greece announced Friday that 85.8 percent of its private-sector creditors had agreed to swap their bonds for new ones at a huge loss.

Greece's Ministry of Finance announced the result on its website Friday after bondholders had to lodge their acceptance of the deal by a Thursday evening deadline.

The wide participation of the offer indicates that Greece will go ahead with the restructuring that hopefully marks a seminal moment in Europe's long-frustrated efforts to rescue its most financially vulnerable nation, The Wall Street Journal reported. It is the largest-ever sovereign-debt default and the first for a Western European country in half a century.

The restructuring now set to be executed will see Greece chop 53.5 percent from the face value of around 200 billion euros ($265 billion) in bonds held by private creditors.

Athens had to win acceptance from private bondholders to avoid a default and it was a condition of the country receiving a second bailout from eurozone nations worth 130 billion euros.

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