ATHENS, Greece (AP) — Greece has issued an official offer for a massive bond swap designed to knock euro107 billion ($142 billion) off its debt held by banks and other private investors.
The Finance Ministry issued a formal offer Friday to banks and other investment funds under which creditors are called on to accept a 53.5 percent loss on the face value of the bonds they hold in return for new bonds with longer maturities.
Success of the deal depends on a high level of participation. It is an integral part of the second international bailout for Greece, under which the country will receive euro130 billion ($174 billion) in rescue loans in return for further harsh austerity measures.
