Greece to launch formal offer for debt writedown

AP News
Posted: Feb 24, 2012 3:33 AM
Greece to launch formal offer for debt writedown

Greece is planning to launch a public offer for a massive bond swap designed to knock euro107 billion ($142 billion) off its debt held by banks and other private investors.

The formal announcement is expected after a Cabinet meeting later Friday, which will also discuss implementation of the debt-crippled country's new austerity program.

Greece's Parliament on Thursday approved an emergency law on the debt writedown, decided by the 17-member eurozone this week together with a new euro130 billion ($173 billion) Greek bailout.

Without either deal, the country would default on its debts next month and would likely be forced to abandon the euro currency.

Greece has been surviving since May 2010 on a first batch of international rescue loans worth a total euro110 billion ($146 billion).

Durbin: Release the Tapes