Greece's Private Creditors Draw Focus


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This week marks a seminal point for officials in the euro zone to grasp ahold of the two-plus-year-old sovereign debt crisis tearing through the region, according to Bloomberg.

Private creditors to Greece, the recipient of two tranches of international bailout aid since June 2010, will decide soon whether to approve history's largest sovereign-debt swap. With a Thursday deadline looming for investors to commit to the debt swap equivalent to $140 billion in euros, finance ministers are slated to conduct a teleconference the next day to itemize results.

"If you have a sick child in the family, you don't abandon it, but work on a remedy," Austrian Finance Minister Maria Fekter told a state radio broadcaster on Saturday, according to Bloomberg. "That's what we're currently trying to do with Greece."

Greece's leaders established a 75 percent participation rate that will see investors relinquish nearly 54 percent of their principal when exchanging for new Greek government bonds and additional notes from the European Financial Stability Facility.

The Associated Press reports concerns about Greece's ability to draw private creditors weighed on markets as the trade week began. Preoccupations also are spreading regarding whether the economy of China, the globe's most rapidly developing system, is cooling off, according to the AP.

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