posted by Alexa Van Sickle
Eurozone countries formally approved Greece’s financial bailout in mid-March after weeks of negotiations. An integral part of the bailout deal was a bond swap in which 85 percent of Greek bondholders – among them French, German and British banks — agreed to a ‘haircut,’ or loss, of 75 percent of their original investment in Greek bonds.
The bond swap overnight cut 100 billion euros from Greece’s 368 billion euro debt burden, but the bailout — Greece’s second in since 2010 — had heavy strings attached. Greece had to agree to severe austerity measures over the coming years, and to having its financial affairs...