GREECE MANAGES TO AVOID DEFAULT
Greece looks to be on course to avoid a messy default on its vast debts as enough of its private bondholders are reported to have accepted a bond swap deal.
According to Greek state TV, more than 70% of private bondholders had agreed to take a cut in the value of their investment in Greek debt hours before the deadline for acceptance passed.
Some 75% of private bondholders need to agree to the so-called haircut, incurring losses of up to 70%, to prevent a potentially catastrophic national default.
The debt deal is essentially a controlled default: a swap of old bonds for new ones, designed to erase some 107bn euros (£90bn) of the country’s debt, which totals more than 350bn euros (£293bn).