The Greek government’s deadline for the biggest sovereign restructuring in history passed Thursday with a majority of investors signaling their readiness to participate in the debt swap.
The deadline at 3 p.m. EST passed as Greek Prime Minister Lucas Papademos told his Cabinet ministers that Greece had made “an appropriate framework with significant incentives” for bondholders.
“For this reason, I look forward to the maximum possible participation of the private sector,” Mr. Papademos said, according to an e-mailed transcript of his comments.
Finance Minister Evangelos Venizelos earlier told Parliament that “a historic process will be completed tonight,” and the results announced on Friday.
Holders of at least 60% of the Greek bonds eligible for the deal — including Greece’s largest banks, most of the country’s pension funds and more than 30 European banks and insurers including BNP Paribas and Commerzbank — have agreed to the offer. That brings the total to at least €125 billion ($166 billion), based on data compiled by Bloomberg from company reports and government statements.
Participation is running at more than 75% and may surpass 80%, the state-run Athens News Agency reported, without saying how it got the information.
The goal of the exchange is to reduce the €206 billion of privately held Greek debt by 53.5% and turn the tide against the debt crisis that has roiled Europe for more than two years.
The Greek government had said it wanted participation above 90% and sought a minimum level of 75%.