On February 24, Greece made a formal launch of a bond swap offer to private holders of its bond to set in motion the largest-ever sovereign debt restructuring in the hope of getting things back in their places.
This swap is part of a second rescue package of 130-billion-euro to claw Greece back from the brink of a disorderly default that was threatening to send shockwaves through the financial system and punish other weak euro zone members.
The head of the International Institute of Finance (IIF) pressed optimism that the exchange would attract high participation from investors.
"We remain quite optimistic that once investors study this proposal ... there will be high take up," Charles Dallara, IIF managing director, said at the G20 meeting in Mexico City. "In my discussions ... no decision has been made on whether or not they will activate those collection action clauses," Dallara said. "Should they decide to activate, of course it does raise concern, including other sovereign issues."
"There is optimism in the government that there will be big participation in the swap," a Greek government official said.
Deutsche Bank and HSBC were appointed as closing agents by Greece.