Greece is set to swap its privately held bonds issued under Greek law with new ones worth less than half their original value.
The bonds are to be swapped Monday, after securing the biggest debt writedown in history last Friday and paving the way for a second international bailout. In last week’s agreement, 83.5 percent of private investors holding Greek debt agreed to the deal, which will see them face real losses of more than 70 percent on their holdings. Of the investors holding the euro177 billion ($234 billion) in bonds governed by Greek law, 85.8 percent joined. The deadline for foreign-law bonds has been extended to March 23. [AP]