Greece has activated collective action clauses (CACs) to ensure the participation in its bond swap was high enough to satisfy the eurozone and the International Monetary Fund that Greek debt is being reduced enough to justify a second bailout.

Participation in Greece’s offer to investors to submit bonds written under Greek law for restructuring, known as PSI, reached 85.8 percent, the government announced on Friday morning.

Bonds written under Greek law amount to 177 billion euros and those holding 152 billion euros in such notes accepted the invitation to undergo a 53.5 percent haircut on their face value.

Greece said that it would activate collective action clauses (CACs), enforcing net present value losses of about 75 percent on investors who refused to participate. This would take the total participation in the bond swap to 95.7 percent.

To reach this percentage, Greece is also including a restructuring of some 20 billion euros held by investors in Greek bonds that are not written under Greek law.

Participation from holders of these bonds only reached 69 percent and Greece has decided to extend until March 23 the deadline for investors to volunteer their bonds for a haircut.

Greece needed a participation rate of between 95 and 100 percent to reduce its debt by more than 100 billion euros and satisfy the eurozone and International Monetary Fund that the haircut had been large enough to allow a new bailout, worth 130 billion euros to go ahead.

“On behalf of the Republic, I wish to express my appreciation to all of our creditors who have supported our ambitious program of reform and adjustment and who have shared the sacrifices of the Greek people in this historic endeavour,” said Finance Minister Evangelos Venizelos in a statement. He is due to hold a press conference later on Friday

“With the support of our official sector and private creditors, Greece will continue implementing the measures needed to achieve the fiscal adjustments and structural reforms to which it has committed, and that will return Greece to a path of sustainable growth,” he added.

The International Swaps and Derivatives Association (ISDA) said it would also meet on Friday to discuss whether a credit event, which would trigger Credit Default Swaps, has occurred as a result of the bond swap.