{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='AP Business Editor comments on Greece bond swap' data-url='/boclips/videos/5c54c475d8eafeecae168efe' data-video-url='/boclips/videos/5c54c475d8eafeecae168efe' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nAP Business Editor comments on Greece bond swap\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003e1. Various of  Phil Tutt, AP Business editor, at computer terminal 2. SOUNDBITE: (English) Phil Tutt, AP Business editor:\"This is a big day for Greece. They have managed to secure 107 billion (b) (euros) off their debt. This debt swap...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003e1. Various of  Phil Tutt, AP Business editor, at computer terminal \u003cbr/\u003e2. SOUNDBITE: (English) Phil Tutt, AP Business editor:\u003cbr/\u003e\"This is a big day for Greece. They have managed to secure 107 billion (b) (euros) off their debt. This debt swap deal has also paved the way for 130 billion (b) (euros) in bailout loans from the European Union and the International Monetary Fund (IMF). So, they're going quite a substantial way to sorting out their debt, but let's not forget that Greece is in the fifth year of its recession, unemployment is around 20 per cent and its debt is still massively more than what it actually earns from its economy. At the moment it's around 160 per cent debt to GDP (Gross Domestic Product) and the European Union and the IMF are looking to get that down to 120 per cent. To put that in context,  the US has got a debt to GDP ratio of 100 per cent and countries like Spain and Italy, which are also on the watch list for danger have got a a debt to GDP ratio of around 60 to 70 per cent.\"\u003cbr/\u003e3. Tutt at computer terminal \u003cbr/\u003e4. Close-up of hands typing\u003cbr/\u003e5. SOUNDBITE: (English) Phil Tutt, AP Business editor:\u003cbr/\u003e\"What Greece has done is in the legislation introducing this bond swap deal, they've included what they call a collective action clause. This means that if the vast majority of bond holders agree to the deal, those that hold out will also have to agree to the deal as well.\"\u003cbr/\u003e6. Various of Tutt\u003cbr/\u003e7. SOUNDBITE: (English) Phil Tutt, AP Business editor:\u003cbr/\u003e\"The ISDA (International Swaps and Derivatives Association) which is a market watchdog for a certain type of financial instrument called the derivative, is meeting this afternoon at 1 o'clock (GMT) in London to decide whether the CACs (collective action clauses) constitute what is called a credit event, which is a technical default. If they decide, then certain insurance instruments called CDSs, credit default swaps, will have been allowed to be introduced. These are basically insurance against a default and these will be paid out to people who have got those. At the moment it doesn't look as if it will have that big an impact on the market, only about 3.2 billion (b) (US dollars) of CDSs are likely to be triggered by this calling of a credit event. It was worried early on in the year, later on last year, that if there was a lot of debts around then this would have caused even greater uncertainty and turmoil in the markets.\"\u003cbr/\u003e8. Various of Tutt\u003cbr/\u003e9.  SOUNDBITE: (English) Phil Tutt, AP Business editor:\u003cbr/\u003e\"These countries (Portugal, Spain, Italy and Ireland) have got their own debt problems, and the market and investors and the world governments, are always keeping a watchful eye on them. Not to say that they're in a good place but they're nowhere near as bad as what Greece has gotten itself into.\"\u003cbr/\u003e10. Close-up of hands\u003cbr/\u003e11. Tutt at computer\u003cbr/\u003eGreece on Friday secured 47 billion (b) US dollars in bailout money to fund debt relief after persuading the vast majority of its private creditors to slash the value of their Greek bond holdings.\u003cbr/\u003eFollowing weeks of intense discussions, the Greek government said on Friday that 83.5 per cent of private investors holding its government bonds were participating in a bond swap. \u003cbr/\u003eOf the investors holding the 177 billion (b) euros (234 billion (b) US dollars) in bonds governed by Greek law, 85.8 per cent joined.\u003cbr/\u003eBut the road ahead for the recession-battered country was still uncertain as it battled with rampant debt and high levels of joblessness, said AP Business editor Phil Tutt. \u003cbr/\u003e\"Let's not forget that Greece is in the fifth year of its recession, unemployment is around 20 per cent and its debt is still massively more than what it actually earns from its economy,\" Tutt underlined.\u003cbr/\u003eGreece's debt stands at around 160 per cent to GDP (Gross Domestic Product). \u003cbr/\u003eThe European Union and the International Monetary Fund (IMF) are looking to bring the figure down to 120 per cent. \u003cbr/\u003eGreece's finance minister Evangelos Venizelos meanwhile, said he would recommend the activation of legislation known as \"collective action clauses\" to force bondholders who refused to sign up into the swap. \u003cbr/\u003eThe issue was to be discussed at a Cabinet meeting on Friday afternoon.\u003cbr/\u003eThe International Swaps and Derivatives Association (ISDA) was also meeting on Friday to determine whether the bond swap would be deemed a so-called \"credit event\" - a technical default - which would trigger the payment of credit default swaps, which is essentially insurance against a default.\u003cbr/\u003eWhen the debt relief plan was first announced last year, eurozone leaders and the ECB (European Central Bank) worked hard to avoid a credit event, because they feared the a payout of CDS could destabilise big financial institutions that sold them.\u003cbr/\u003eHowever, since then a CDS payout has started to look less threatening. \u003cbr/\u003eThe ISDA, a private organisation that rules on credit events, said that if triggered, overall payouts on CDS linked to Greece will be below 3.2 billion (b). \u003cbr/\u003eThat amount is spread over many financial firms and likely too small to significantly hurt any one of them.\u003cbr/\u003eTutt said that without Friday's bond swap deal the scenario would have been much grimmer. \u003cbr/\u003e\"There was worry early on in the year, later on last year, that if there was a lot of debts around then this would have caused even greater uncertainty and turmoil in the markets,\" he said.\u003cbr/\u003eThe bond swap is a radical attempt to pull Greece out of its debt spiral and put its shrinking economy back on the path to recovery. \u003cbr/\u003eThe hope is that by slashing debt, the country can gradually return to growth and eventually repay the remaining money it owes.\u003cbr/\u003eThe national statistical authority said on Friday that the recession in the last quarter of 2011 was deeper than initially forecast, reaching 7.5 per cent instead of 7 per cent. \u003cbr/\u003eThe economy is expected to shrink for a fifth straight year in 2012, stagnate in 2013 and modestly expand in 2014.\u003cbr/\u003eTutt said the situation in other debt-ridden countries like Portugal, Italy, Spain and Ireland was was being closely monitored, but was \"nowhere near as bad as what Greece has gotten itself into.\"\u003cbr/\u003eThe fear is that a meltdown in Greece might panic depositors into pulling their money out of European banks and scare bond investors into dumping Portuguese, Italian and Spanish bonds. \u003cbr/\u003eAs they sold the bonds, the interest rates on them would rise, driving those countries' borrowing costs up, possibly to unsustainable 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