The restructuring of the Greek debt constitutes a credit event

The committee of the International Swaps and Derivatives Association (ISDA) has decided unanimously that what happened in Greece was a credit event. This means the activation of the credit default swaps (CDS), with only a question of when, as even until the last moment of a long meeting the ISDA members emphasized that the CDS will be paid only when CACs in the Greek debt are officially activated (published in the Government Gazette).

After the government's decision to activate the CACs for bonds issued under Greek law, this development from ISDA seemed almost like a one-way street. The International Association mentions in its statement that this decision came after Greece's move to include the CACs «by changing the conditions of bonds governed by Greek law, thus reducing the rights of holders of affected securities in terms of the collection of payments."

This decision means that the CDS are activated and as ISDA says in its statement, the auction will take place on March 19.

The value of the Greek CDS is estimated at about $ 3.2 billion.