Reuters reports that banks are set to lose almost three-quarters of the value of their Greek government bonds under a deal agreed early on Tuesday, people familiar with the matter said, although enough are expected to agree to the write-off for it to scrape through.
Investors had previously expected to suffer a 70 percent hit, so now face an extra collective loss of up to 8 billion euros (6.7 billion pounds). The big bondholders include the likes of BNP Paribas, insurer Allianz and hedge fund Greylock.
Commentators expected to see the private sector squeezed more as politicians struggled to fill Greece's funding gap, since a full default could have seen them left with nothing.
"Both parties knew that the ultimate recovery for private sector investors is potentially zero," said Gary Jenkins, analyst at Swordfish Research….
Read and weep at http://uk.reuters.com/article/2012/02/21/uk-greece-banks-idUKTRE81K18O20120221
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