After months of procrastination, Athens has finally managed to persuade more than 80 per cent of its private bond holders to sign up to the biggest single national debt writedown in history.
The deal paves the way, finally, for Greece to secure its second massive bailout in 18 months from the troika of the European Union, the European Central Bank and the International Monetary Fund.
But the writedown was only secured after months of negotiation and talks came down to the wire. Significantly, more than 15 per cent of Athens' private bondholders refused to take a 53 per cent haircut on their investments.
The deal is enough for the troika to begin the bailout process and a tranche of €35 billion (Dh170 billion) is being released immediately to pay for a portion of the haircut. While the writedown and bailout will allow the Eurozone to remain intact for now, there are still huge endemic problems with Greece's underperforming economy, its inefficiencies and Athens' ability to follow through on a rigid austerity programme will test the troika's patience.
With elections due this spring, there is every likelihood that those who signed up to the bailouts will suffer the wrath of the Greek electorate.
