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Athens issues threat to bond holdouts

Greece has threatened to default on any of its bondholders who do not take part in a €206bn debt restructuring that officials believe is key to returning Athens to solvency, a move that turns up the heat on potential holdouts ahead of a deadline on Thursday.

The Greek public debt management agency said in a statement Athens “does not contemplate the availability of funds” to pay private investors who hold onto their bonds once the restructuring occurs. The transaction is projected to wipe €100bn from Greece’s debt pile, but 95 per cent of bondholders must particpate for that target to be reached.

http://www.ft.com/cms/s/0/4fc58c98-67b7-11e1-b4a1-00144feabdc0.html#axzz1oMiKLRIv