A large group of private creditors agreed on Monday to take part in the multibillion euro Greek debt swap, in a step forward for Athens as the country struggled to avert a sovereign default.
People in Athens who are close to the debt swap process said they still expected that collective action clauses would have to be activated to ensure the participation rate was high enough for the €206 billion swap to succeed, despite an optimistic claim by Evangelos Venizelos, finance minister, that it would reach more than 90 per cent.
Mr Venizelos on Monday urged private bondholders to come on board, saying: “Our target is near universal participation ... No one should imagine that there will be a second offer that will include these elements.”
The participation is unlikely to exceed 75-80 per cent but if CACs are activated, it might be possible to raise the level to 90-95 per cent and complete the swap by next Monday as planned.
12 banks, insurers, asset managers and hedge funds in the steering committee of bank lobby group, The Institute of International Finance, said they would take part in the bond exchange. Members of the IIF steering committee include BNP Paribas, Deutsche Bank, National Bank of Greece, Allianz and Greylock Capital Management.
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