Participation in PSI passes 95 pct with help of CACs

Participation in Greece?s offer to private bondholders to take part in a restructuring scheme reached 85.8 percent, the government announced on Friday morning.

Greece said that it would activate collective action clauses (CACs), enforcing losses of about 75 percent on investors who refused to participate. This would take the total participation in the bond swap to 95.7 percent.

Greece needed a participation rate of between 95 and 100 percent to reduce its debt by more than 100 billion euros and satisfy the eurozone and International Monetary Fund that the haircut had been large enough to allow a new bailout, worth 130 billion euros to go ahead.

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