85.8% PSI participation that might reach 95,7% with the activation of CACs

Greece achieved the greatest debt reduction in world history. As announced at 8 am today, Friday, the participation percentage in the haircut of individuals who held Greek bonds amounts to 85.8% without the activation of the CACs. If they are activated as well, the PSI percentage will reach 95.7%.

Based on the agreed percentage of the haircut of Greek bonds (53.5% of their nominal value), the important thing is that this will erase a total of 90.53 billion euros from the Greek debt. For bonds under foreign law, the exchange will be completed by April 11.

This development means that the program is successful, and if CACs are activated too the final cut will reach a rate of 95.7% of the debt. The rate will not reach the ceiling of 100%, as it does not include any of the bonds of public utilities.

This vindicates the optimism shown early on Thursday by IIF chief Charles Dalara and Finance minister Evangelos Venizelos. "I want to express my appreciation to all creditors who supported the ambitious program of reforms and adjustments and took part in the sacrifices of the Greek people," Evangelos Venizelos said in a statement immediately after the announcement of the PSI results.

The Finance minister also said that "Greece will continue to implement the necessary measures to achieve the budgetary adjustments and structural reforms to which it has committed in order to return Greece on a path of sustainable growth."

After the official announcements, Venizelos has a scheduled press conference at 1 pm. He has also scheduled a teleconference of the 17 finance ministers of member states of the Eurozone and a cabinet meeting.

Regarding the schedules next Monday, March 12, will see the exchange of bonds and the meeting of the Eurogroup. On March 14 officials have scheduled a meeting of the Euro Working group to validate the timing of the tranches from the new loan program of 130 billion and on March 15, there will be a meeting of the executive board of the IMF.