Head of IIF sees ‘strong participation’ in Greek haircut

Private bondholders have pledged «strong participation» in the bailout deal agreed for Greece, Charles Dallara, managing director of the Institute for International Finance (IIF), said on Tuesday.

The IIF, a global association of financial institutions, has been representing private bondholders in discussions on Greece.

Asked how much bondholders would lose in the deal agreed on Tuesday, IIF crisis resolution official Jean Lemierre said: «It is more than 70 percent.”

The details of the debt-swap agreement will be submitted to the IIF?s full steering committee to be reviewed.

The offer involves a 53.5 percent reduction in the nominal face value of Greek debt held by private investors. The new bonds given to private holders of Greek debt will be governed under English law.

[Combined reports]