News and Views March 2012
Stephen Walker
Greece, with a little help from its ‘friends’ has successfully pushed through a debt swap that reduces its debts by more than €100 billion; holders of 95.7% of privately held bonds will participate in the swap following the retroactive imposition of collective action clauses into bond terms. This process now unlocks the €130 billion rescue package agreed by Euro-region finance ministers. The deal represents the largest sovereign restructuring ever and is the culmination of months of negotiations.