Greece said on Friday it would only go ahead with a bond swap plan that is a critical part of its second bailout if at least 90% of private creditors participate.
The July 21 bailout plan would see banks and other financial institutions give Greece easier repayment terms on its bonds.
However, in return, Greece has to fund an expensive collateral arrangement, which will secure the remaining face value of the bonds and would cost the country about €42-billion ($60-billion) until 2020.
The Athens Stock Exchange on Friday posted extracts of a letter sent by the government to foreign finance ministers saying that Greece “shall not be obliged to proceed” unless it could get at least 90% of its eligible bonds swapped or rolled over. It also said 90% of that must be bonds maturing between June 30 2011 and August 31 2014.
“If these thresholds are not met, Greece shall not proceed with any portion of the transaction,” the letter said.
The letter was sent to foreign finance ministers asking for help in determining which institutions in their countries hold Greek bonds maturing through the end of 2020.
Debt-strapped Greece has been relying rescue loans from European Union countries and the International Monetary Fund since last year. It was granted a first, €110-billion ($159-billion) bailout in May 2010 but still needed to get a second rescue deal worth a further €109-billion ($157-billion) last month. — Sapa-AP