Decision day in Greece
Posted Mar 8, 2012 7:58 am.
This article is more than 5 years old.
Thursday is final decision day for bondholders in Greece; either they agree to terms on a debt restructuring, or Greece goes into default.
Major banks and pension funds have reportedly already agreed to the plan to swap their current holdings of Greek debt for new longer term bonds; losing more than half of their initial investment in the process.
The target is for 75 per cent of private investors to agree to the deal, cutting Greece’s debt in half and allowing it to qualify for the second European Union bailout worth $170-billion.
The fear was that Greece would default on its debt, leading to a catastrophic ripple through the European banking system.
Greece’s Debt Management Agency says it will detail results Friday morning.
