Greece In Anticipation As Bond Swap Deadline Approaches

Bondholders have until 8pm GMT to sign up to take part in Greece’s bond exchange, according to BBC News. Greece is looking for at least 75% of its bondholders to agree to take a cut in the value of their holdings.

Local officials said that almost 60% had already committed to sign up for the deal, including Germany’s Munich Re, French banks Societe Generale and BNP Paribas, as well as some pension funds. According to BBC News, small pension funds are still waiting to see what hedge funds will do to decide on their action.

A Greek official was quoted by BBC saying: ‘The pace of responses to the bond offer is good, the percentage of bondholders tendering voluntarily is very high’.

If the debt swap does not go through today, European Union and International Monetary Fund officials have warned that Greece will not get its latest bailout of 130 billion Euros.

The initial 107 billion Euros write-off, along with a package of public sector cuts, aimed to reduce Greek debt from 160% of GDP to 120.5% by 2020.

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