Greek PSI Deal Completed

On 24 February 2012, Greece opened the Private Sector Involvement debt swap deal (PSI) to bondholders. Essentially the deal involved a swap that meant bondholders would have to accept a 53.5% cut on the face value of their bonds which, in real terms, meant a loss of approximately 75% on their investment. The deal will be the largest financial restructuring in history, dwarfing the Argentinean restructuring in 2005 valued at EUR 33.3 bn and even the Brazilian restructuring back in 1988 which was, until now, the largest restructuring at EUR 47.3 bn. The offer closed on 8 March 2012.