Societe Generale and UniCredit agree to participate in Greece debt-swap deal

By @ibtimes on

Societe Generale, the second largest bank in France, UniCredit and Assicurazioni Generali all agreed to participate in the Greek debt-swap deal, joining several other firms already committed to the campaign that aims at helping Greece to avert a financial collapse in March.

The lenders hold a large portion of the Greek current debt, according to Bloomberg, which makes their participation essential to the success of the exchange.

The Finance Ministry in Greece also clarified in a statement yesterday that the largest six banks in the country also plan to join the campaign in attempts to save the Greek economy.

The Greek government expressed that 75% of the total bondholders must participate in the campaign in order for the Greek law to force other holders to participate in the swap-deal.

The reason behind this deal is that Greece attempts to lower the existing 206 billion euros of debt by 53.5%, the thing that will by the euro zone and Europe in general sometime to figure something out and solve the debt crisis once and for all.

Jean Leonetti, the French European Affairs Minister, said yesterday in Paris that it's in the interest of the private creditors as well as international stability, adding that all private creditors know it's better to lose a little to win a lot rather than lose a lot later and win nothing.

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