Banks and pension funds accept Greek bond offer

Major banks and pension funds threw their weight behind Greece’s bond swap offer to private creditors yesterday, making it increasingly likely that the deal will go through and clear the way for a bailout package to avert a chaotic default.

A group of 30 banks and funds representing 40.8% of Greece’s €206bn of outstanding debt said they would take part in the deal, joining other Greek and foreign banks and pension funds which have already pledged to accept the offer.

A senior Greek finance ministry official told Reuters the government was now optimistic that well over 75% of eligible bonds would be submitted, easily clearing the original minimum threshold it had set for the deal to proceed.