Summary Box: Greek bond swap gets more takers

AP News
Posted: Mar 07, 2012 2:19 PM
Summary Box: Greek bond swap gets more takers

SUPPORT BUILDS FOR DEBT SWAP: Private investors' participation in a massive debt relief deal grew on Wednesday, bringing Greece closer to avoiding a default that would plunge it into financial chaos and reignite the European debt crisis.

THE DETAILS: With a day left before the deadline for acceptances, investors owning close to half of Greece's privately-held debt had committed publicly to the bond swap. They would swap their Greek bonds for new ones with a face value reduced by 53.5 percent, longer repayment deadlines and lower interest rates.

THE GOAL: Greece needs the deal to secure a euro130 billion ($171 billion) international bailout. It needs 90 percent of investors to sign up. However, a voluntary participation rate of around 70 percent could be enough to force most holdouts to go along.