March 7, 2012
Greece inched nearer to a successful €206bn debt restructuring after private sector bondholders representing almost 40 per cent of securities said they were backing the deal.
Banks, insurers and asset managers holding €81bn in Greek debt have agreed to exchange their bonds for new instruments that will leave them with losses of about 75 per cent.
The list of 30 participants includes Allianz, BNP Paribas, Deutsche Bank, HSBC and Royal Bank of Scotland, as well as several Greek banks. Many of them had already publicly committed themselves to the deal but Wednesday’s statement marked the first time all the holdings had been added together.
The move came a day after Greece threatened to default on any of its bondholders who did not take part in the debt swap, a move that turned up the heat on potential holdouts ahead of a deadline on Thursday.
The Greek public debt management agency said Athens “does not contemplate the availability of funds” to pay private investors who hold on to their bonds once the restructuring occurs.
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