Greece this evening launched a debt swap offer to private creditors holding nearly €206 billion of Greek debt, hoping to cut the total amount the country owes by about a third, a statement said.
"The bonds invited to participate in the swap have an aggregate outstanding value of approximately €206 billion," the Greek finance ministry and the debt management agency said.
The swap is expected to cut €107 billion from Greece's total €350 billion debt mountain.
Athens said it was seeking participation from at least 75% of bonds selected to participate, or the transaction will be called off. "If less than 75% of the aggregate face amount of the bonds selected to participate are validly tendered for exchange, the Hellenic Republic will not proceed with any of the transactions described above," it said.
It noted that under legislation approved this week, the exchange becomes binding for bonds governed by Greek law "if at least two thirds by face amount of a quorum of these bonds approve the proposed amendments."
Eligible bonds covered by the exchange include maturities ranging from March to July 2057. A three-year bond worth €14.43 billion matures on March 20, and can not be repaid by Greece if the debt write-down fails.
The swap, in effect a cancellation of nearly a third of the €350 billion in debt owed by Greece, is part of a rescue stitched together with the euro zone and International Monetary Fund to avert default.
