The Greek deal with lenders to exchange Greek government debt for new bonds has been sealed on Saturday, taking Greece a step forward to receiving its second bailout of 130 billion Euros, according to BBC News.
The deal with banks and other financial institutions is the largest restructuring of government debt in history, classified by the International Swaps and Derivatives Association as a ‘credit event’. Under the deal, lenders had agreed to exchange their existing Greek government debt for new bonds which are worth much less and pay a lower rate of interest.
According to BBC News, to push through the deal Greece needed to get the agreement of 75% of its debt holders. Athens received 85.5% agreement from debt holders who are subject to Greek law, and 69% of its international debt holders.
Finance ministers across the Eurozone said that the conditions are now in place for Greece to receive its second bailout of 130 billion Euros.
The ministers will meet on Monday and are expected to officially sign off on the bailout deal.