Greek debt swap goes swimmingly well?

BBC News – Greece to go ahead with crucial debt swap.

My understanding of this is as follows:

Some 86% of debt holders have agreed to swap their holdings with new bonds that have half the face value. The remaining dissenters will now be forced to accept the deal.

The alternative, presumably was to get nothing (Default), not really much of an alternative?

This means that Greece will get it’s next tranche of Euro 130bn from “Germany

In turn Greece can then pay back the Euro 14bn it owes at the end of the month.

I’m not sure how this actually helps the Greek economy or the Greek people in the long run but The Greek Finance Ministry seem to be quite pleased.

Also Stock Markets seem delighted with the news, so I am forced to conclude that everything must be ok?

Common sense, don’t leave home without it!


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