Photo: Flickr/Sharon Mollerus
According to CNBC, voluntary private sector participation in the Greek bailout will only amount to 75%.That’s well below the 90% participation demanded by the Bank of Greece last month in order to go through with the deal.
The bond swap forms a key part of the selective default plan outlined in the July 21 bailout agreements. If Greece is committed to sticking to its demands, then it will not go through with the swap plan, thereby undermining the bailout.
This participation level is not final — Greece has only asked private bondholders to express interest in the deal so far.
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