Anxieties abound as investors sweat out a Thursday deadline for swapping Greek government bonds with new debts that are worth 70% less, according to the BBC.
The deal could determine whether Greece remains in the euro. The BBC reports that the deal is a prerequisite for Greece to obtain new bailout funds. Failure to execute the swap could lead to a default on Greece’s debts.
The stock market recorded sharp losses on Tuesday which stemmed from fear that many investors would not go through with the swap.
Despite the apprehension, experts believe the deal, which requires private sector bondholders to agree to a 53.5% cut in the Greek bonds that they hold, should go through with little trouble.
In order for the deal to pass, at least 75% of bondholders must agree to it, according to the BBC. Late Tuesday, Greece’s finance ministry said that six of the country’s largest banks will accept the deal.