BERLIN (MNI) – The German Banking Association (BDB) expects large
participation in the debt swap agreed by private Greek creditors early
Tuesday, said BDB president Michael Kemmer in a press release.

Kemmer argued that the banks had already prepared themselves for
the haircut on Greek bonds in recent months and made the necessary
write-downs.

“Thus, I assume that there will be overall a large participation of
private creditors in the deal,” the BDB president said.

Charles Dallara, managing director of the Institute of
International Finance, said earlier today that the debt swap was a solid
deal for investors despite the increased haircut they were obliged to
take.

The IIF agreed to accept a nominal haircut of 53.5% on private
investor holdings of Greek government bonds, up from an initially agreed
write-down of 50%

–Berlin bureau: +49-30-2 62 05 80; email: twidder@marketnews.com

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