The Greek government said it reached its target in the biggest sovereign restructuring in history, with a 95.7 percent participation rate among investors after it received approval to activate collective action clauses.
Bondholders tendered 152 billion euros of Greek-law bonds, or 85.8 percent, after the government offered to swap their holdings for new securities under the debt exchange. Twenty billion euros of foreign-law bonds were also tendered, according to an emailed statement from the Greek Finance Ministry.
The euro was down 0.3 percent at $1.3239 after the release at 8:40 a.m. in Athens. Asian stocks rose for a second day.
“I wish to express my appreciation to all of our creditors who have supported our ambitious program of reform and adjustment and who have shared the sacrifices of the Greek people in this historic endeavor,” Finance Minister Evangelos Venizelos said in the statement. He is due to hold a press conference at 1 p.m. Athens time.
With Greece again the focus of the euro-area debt crisis now in its third year, the goal of the exchange was to reduce the 206 billion euros of privately held Greek debt by 53.5 percent. Together with a 130 billion-euro second Greek aid package, the writedown is a key element in European leaders’ efforts to turn the tide against the crisis that has roiled Europe, forcing Ireland and Portugal to follow Greece in requiring bailouts.
The International Swaps and Derivatives Association said the determinations committee will meet at 1 p.m. London time to consider a “potential credit event” relating to Greece. European finance ministers will hold a conference call at the same time to discuss the swap result.
(source: Bloomberg)
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