Greece will begin the process of swapping current bonds for new, lower value ones. The process will cause private investors to take a “haircut’ of 70%. There are questions about whether this will be considered a default which might trigger credit default swaps. The markets do not appear to care much. European stocks have held their own. The nature of the swap has not help up plans to get Greece more aid next month
The swap, in which investors trade bonds for lower-value debt, is to be launched on Friday with the aim of slicing 100 billion euros off liabilities worth 160 percent of national output that have brought the country to the brink of a chaotic bankruptcy.
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