Greece’s Creditors Agree to Forgive More Than Half Debt
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Greece reached an agreement with its private creditors to secure the biggest sovereign restructuring in history, paving the way for a second bailout of the debt-ridden nation and averting an economic collapse.
Investors will forgive 53.5 percent of their principal and exchange their remaining holdings for new Greek government bonds and notes from the European Financial Stability Facility, the International Institute of Finance said in a statement today after a final round of talks overnight. The coupon on the new bonds was set at 2 percent until February 2015, 3 percent for the next five years and 4.3 percent until 2042.