CEIC Data Blog

Greece – Greece Secures Largest Debt Cut in History


MACRO WATCH Global: In March 2012, policymakers managed to strike an agreement with government securities’ investors to issue bond swaps that would cut down more than half the face value of Greek government securities. The agreement seeks to reduce government debt to approximately 50% of GDP and to establish repayment terms that are more manageable in the long run, as current Greek treasury bill and bond yields have reached levels as high as 4.85% and 20% to 30% p.a., respectively.

Greece Debt Write DownGreece Debt
Chart provided by: CEIC

Furthermore, the write down was a key condition for Greece to receive the EUR 130 billion in bailout funds and, thus, to avoid a default on government securities. Policymakers hope that these changes will give the country a second chance to revive its economy and embark on the path to recovery.

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By Ken Ng in Malaysia – CEIC Analyst

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