ECONOMY

Rehn joins voices of optimism over bond swap

The Greek bond swap is expected to go through «without a hitch,» the French daily Le Figaro quoted European Economic Affairs Commissioner Olli Rehn as saying on Wednesday.

His comments come a day before Athens is expected to clinch a deal to reduce the 206 billion euros ($270 billion) of privately held Greek debt by banks and pension funds by 53.5 percent, helping avert a disorderly default that could roil markets and fuel contagion.

“According to the information that we have gathered, the debt exchange should take place without a hitch, because the operation remains financially attractive for the private sector,» Rehn was quoted as telling the newspaper.

Rehn also said that the Commission is not «privileging» a scenario whereby holders of credit default swaps would claim payment if the Greek swap offer went badly.

The European Union and International Monetary Fund have said that if the debt swap does not go through Greece will not be receiving 130 billion euros of additional bailout loans.