Enough holders of Greek sovereign debt have now signed on to the debt swap deal that is a prerequisite for a second bailout that success seems likely. However, there is still a chance that collective action clauses may be triggered.
Bloomberg reported late Wednesday that investors with approximately 60% of outstanding debt have now indicated that they will accept the terms of the swap, including the country’s largest banks, most of its pension funds, and more than 30 European insurers and banks. So far that amounts to about 124 billion euros ($163 billion), according to Bloomberg compilations.
The deal remains open till 10 p.m. Athens time (3 p.m. EST) on Thursday. Christoph Rieger, head of fixed-income strategy for Commerzbank, was quoted saying, “Adding up the commitments to participate in the Greek PSI, it is now clear that the CAC hurdles will very likely be cleared.”