ATHENS, Greece -Privately held bonds that were issued under Greek law will likley be swapped today with new ones worth half their original value. The bonds are to be swapped the biggest debt writedown in history was secured last Friday. The deal is also paving the way for a second international bailout.
In last week’s agreement, 83.5 percent of private investors holding Greek debt agreed to the deal, which will see them face real losses of more than 70 percent on their holdings. Of the investors holding the 177 billion euros ($234 billion) in bonds governed by Greek law, 85.8 percent joined. The deadline for foreign-law bonds has been extended to March 23.
Finance ministers from the 17 eurozone nations are to meet in Brussels later Monday, where they will discuss releasing funds from a 130 billion euro ($172 billion) second bailout.