Greek cabinet approves PSI

Greece’s cabinet on Friday approved the launch of a massive debt restructuring scheme designed to knock 107 billion euros the country’s debt held by banks and other private investors.

?A titanic effort is made… to ensure financial support for the country,? Prime Minister Lucas Papademos said after the cabinet meeting

Greece hopes to complete the debt restructuring process, known as PSI, by March 12.

On Thursday, Parliament approved the details of the bond swap, which will call on bondholders to accept a 53.5-percent haircut on the face value of their holdings.