Large majority of investors takes up Greece's bond-swap offer, helping Athens avoid default

The L.A. Times reports:

Big banks and private investors holding $227 billion in Greek bonds have agreed to join in an unprecedented debt-restructuring deal that clears a key hurdle in the release of international rescue funds to Greece, diminishing fears of a devastating default.

The Greek finance ministry said Friday morning that 85.8% of private-sector investors had committed to swapping their bonds for new ones with less than half their value as part of a complex scheme to wipe away about a third of Greece’s nearly $500 billion in debt.

It’s the biggest debt-restructuring exercise ever attempted, overshadowing Argentina’s $82-billion default a decade ago.