Greece’s private investors agreed on Friday to swap their government bonds for new securities that are worth 83.5 percent of the country’s sovereign debt in a deal that help the country stay afloat and avoid default on its massive debt, Greek Finance Ministry said.
A deal that has cleared the way for the 130-billion-euro rescue package from the European Union and the International Monetary Fund, Greece’s second since 2010, secured a total of 172 billion euros ($214 billion) out of the 177 billion euros of Greek-law bonds, the Ministry said in a statement.
The finance ministry also said that a "collective action clause" will be used towards the rest of the Greece's private creditors in order to enforce the restructuring of the country’s sovereign debt.
The clause will legally bind bondholders to accept the deal.
