Wall Street Journal
March 6, 2012
Banks, insurance firms and investment funds of all shapes and sizes owning €177 billion in Greek government bonds issued under Greek law have another couple of days to make up their minds. Do they want to swap their old paper for new, or will they hold out? Investors have until 2000 GMT Thursday to make up their minds.
On Friday, the 17 euro-area finance ministers will likely “take stock” of the outcome in a tele-conference on Friday. By Monday, the deal should be done and dusted.
Following that, Greek Prime Minister Lucas Papademos said last week he hopes that, by March 14, Greece will have a final approval of the entirety of its second €130 billion bailout. And just like that, the biggest sovereign debt restructuring in history will have been completed. A second, smaller phase of restructuring some €30 billion in foreign-law bonds is set to ensue in April.
Over the last couple of days, some creditors have pledged to back the debt restructuring, saying they will voluntarily tender their bonds and exchange them for new ones with a lower face value, lower interest rates and longer maturities. But will these creditors be enough for the deal to go ahead?
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