Greece has fallen out of the headlines in the past few days due to a supposed resolution of the debt deal, but large hurdles still exist. Managing Director Dallara of the IFF is under the impression that the current plan will be proved a success next week with investors exchanging their current bonds for a 53.5% haircut. However the success of this exchange requires a 90% participation rate which is a tall order for many of the hedge funds holding Greek debt. If participation can be raised above 75% but under 90% then Greece will bring the issue to their public sector creditors.
“with investors that momentum is building,” Charles Dallara, managing director of the International Institute of Finance (IIF), told Greece’s Antenna television in an interview. “I’m quite optimistic that the participation levels will be quite high,” he said, but he declined to predict a figure.
IIF’s Dallara says confident Greek debt swap will succeed | Reuters.