ATHENS (Reuters) Greece averted the immediate risk of an uncontrolled default on Friday, winning strong acceptance from its private creditors for a bond swap deal which will eat into its mountainous public debt and clear the way for a new international bailout.
The Finance Ministry in Athens says well over 80 percent of private creditors have agreed to a bond swap deal.
This would reach 95.7 percent of all privately held Greek debt with the use of collective action clauses to enforce the deal on creditors who refused to take part voluntarily.
It is very important, notthe transaction per se, but the fact that this is the beginning of the restoration of confidence in the economy, said financial analyst Michalis Massourakis.
In order to cut the national debt drastically, private investors are accepting huge losses in exchange for new bonds.
They chase people for owing 100 euros to a bank, yet those who owe billions are exempt.
The unemployment rate is twice the eurozone average; more than half of young people are out of work.
Austerity measures ordered by international creditors have fuelled many peoples anger.
More about: European Union, Financial Crisis, Greece, Greek debt, Greek economyCopyright © 2012 euronews.
This is a totally negligible sum for the Greek and the European economy.
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