ECONOMY

Cypriot banks join Greek debt swap deal

A Cyprus banking official says the island’s three biggest banks are signing up to Greeces debt swap deal.

Cypriot banks hold ?4.7 billion in Greek government bonds, and almost the entire amount is held by the biggest three: Marfin Popular Bank, Hellenic Bank and Bank of Cyprus.

The Cyprus banking official said the three would issue a statement later Wednesday, and spoke on condition of anonymity pending the announcement. Earlier, the banking group leading the debt relief talks included Marfin in a list of investors who have agreed to participate.

The debt swap will see investors lose some 75 percent of the total value of their bonds.

A successful debt relief deal is key to Greece receiving a ?130 billion bailout and avoid bankruptcy.

Investors have until Thursday night to sign up to the deal.

[Associated Press]