Greece convinces debtors to cut their losses and secures historical debt cut

Following weeks of intense and emotional meetings and discussions, the Greek government said today that 83.5 percent of private investors holding its government bonds were participating in a bond swap. Of the investors holding the euro177 billion ($234 billion) in bonds governed by Greek law, 85.8 percent joined.

"We have achieved an exceptional success ... and I believe everyone will soon realize that this is the only way to keep the country on its feet and give it a second historic chance that it needs," Finance Minister Evangelos Venizelos told Parliament.

The investors will exchange their bonds with new ones worth 53.5 percent less in face value and easier repayment terms for Greece. A total of euro206 billion ($273 billion) of Greece's debt is in private hands. The swap will effectively shift the bulk of the remaining debt into public hands — mainly eurozone countries contributing to Greece's bailouts.

EU-Digest