Greek haircut reaches top news in international media

After the official announcements made earlier today by the Finance ministry concerning voluntary participation in the PSI at 85.8%, the foreign media are talking about a major success on the haircut of the Greek debt.

Widespread optimism prevails in the story of the BBC, CNN and Reuters about reducing the Greek debt by 105.27 billion after the haircut, and they seem to welcome the completion of the PSI with a positive reaction.

 

Specifically, the BBC reports that "the Greek government today secured financial support from creditors above all expectations, as it needed 75% to close the deal.

 

The story also states that the exchange was necessary so that there can be a second bailout by the European Union, the European Central Bank and the International Monetary Fund.

 

CNN talks about a monumental project that brought agreement between creditors and Greece regarding the restructuring of Greek government bonds.

 

The edition hosts statements by Finance minister Evangelos Venizelos as well, welcoming the agreement on the PSI, expressing his appreciation to the creditors who supported this ambitious project and wanted to share the heavy load carried by the Greeks through this difficult time.

 

Reuters talks about the sealing of the colossal debt of our country, noting that Greece has managed to successfully avoid default, which would have probably shaken the Eurozone.

 

"Athens desperately needs to 'exorcise' the default scenario," the text reads, with officials saying that the agreement closed at the last minute, stressing the fears that existed until the very end that the deal might collapse and derail a broader bailout package.

 

Reuters was the first to broadcast the news that participation reached over 85% for securities subject to Greek law, citing a Greek official and market factors as well.

 

CNBC broadcast even more optimistic messages, speaking of a participation rate of around 90%.

 

Bloomberg’s story was entitled "Private investors have agreed to exchange 85.8% of the bonds." According to reports, the Finance ministry received bids for 152 billion euros for bonds governed by Greek law and another 20 billion by foreign law, and Bloomberg estimates that the activation of CACs will increase the rate to 95.7%, i.e. the haircut amount will reach 197 billion euros of a total of 206 billion.

 

The MarketWatch story runs along the same lines, highlighting of course the triumph for the haircut of the Greek debt. According to the story, the country will activate the CACs, virtually forcing all private owners to participate in the program.

 

"The road is open for the haircut of the Greek debt," "The rescue of Greece in the final stretch," "Sublime participation in the haircut", "Christine Lagarde relieved by participation in the haircut, but the hedge funds are looking for a way out", are just a few of the titles of German articles regarding the involvement of private creditors in the haircut of the Greek debt.

 

German Süddeutsche Zeitung of Munich observes a "first victory" for Athens, describing the increased participation in the haircut of banks and insurance companies as successful.