Greece formally launched a bond swap offer to private holders of its bonds on Friday, setting in motion the largest-ever sovereign debt restructuring in the hope of getting its messy finances back on track.
In the swap, investors will trade bonds for lower-value debt securities, aims to slice 100 billion euros off Greece's over 350 billion euro debt load. The head of the International Institute of Finance (IIF), a bank lobby group that negotiated on behalf of the private sector, expressed optimism that the exchange would attract high participation from investors. The new bonds will carry an average coupon of 3.65 percent over the 30-year period and be governed by English law.
The swap is part of a second, 130-billion-euro rescue package to claw Greece back from the brink of a disorderly default that had threatened to send shockwaves through the financial system and punish other weak euro zone members.
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