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Greece secures bond swap participation; will drastically reduce debt

March 8, 2012 12:00:00 AM PST
There is hope in sight for Greece, as it announced Friday the country has secured enough participation in its bond swap offer to drastically reduce its debt.

The bond swap is critical to saving Greece. It will stave off an imminent default and paving the way for the release of funds from international rescue loans.

Greece said Friday that 85.8 percent of private investors holding its Greek-law bonds had signed up to the deal and that it aimed to use legislation forcing holdouts to participate. It extended the deadline for holders of foreign-law bonds, of whom 69 percent have so far signed up, until March 23.

The deal aims to slash the country's national debt by $140 billion with private bond holders accepting a face-value loss of 53.5 percent, in exchange for new bonds with more favorable repayment terms.

The Associated Press contributed to this report.