(Click image for full PSI results press release)
Holders tendered 85.8 per cent of Greek law bonds into the exchange. Greece has announced that collective action clauses will be used, to restructure 95.7 per cent.
Remaining foreign law bondholders, of which 69 per cent have already opted to accept, face a deadline of 23 March to decide whether to exchange their bonds. The government cannot rely on the same collective action clauses as above to secure further participation. But Greek finance minister, Evangelos Venizelos, warned that holdouts would have “no further opportunity” to benefit from credit sweeteners in the overall new Greek bond package, such as EFSF bonds or GDP warrants, beyond this deadline. Which is probably understating the risks that holdouts would be taking.
Isda announced early on Friday that its determinations committee will meet at 1pm GMT to discuss a potential credit event in Greek CDS. A question about Greece has been submitted and accepted to the DC already. Gosh we wonder what that could be about. (Hint – CACs)