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Protesters raise a Greek flag in front of parliament during a rally against austerity economic measures in Athens' Syntagma (Constitution) Square in this June 17, 2011 file photo. (JOHN KOLESIDIS/JOHN KOLESIDIS/REUTERS)
Protesters raise a Greek flag in front of parliament during a rally against austerity economic measures in Athens' Syntagma (Constitution) Square in this June 17, 2011 file photo. (JOHN KOLESIDIS/JOHN KOLESIDIS/REUTERS)

Fitch downgrades Greece to restricted default Add to ...

The Fitch ratings agency has downgraded Greece to “restricted default” after the country secured a strong majority of private creditors to participate in a bond swap deal that will wipe off about €105-billion from its national debt.

Friday’s move was expected, with ratings agencies having said they considered the bond swap deal to be a default. The two other major ratings agencies, Moody’s and Standard & Poor’s, have already downgraded Greece to default level.

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Following weeks of intense discussions, the Greek government said Friday that 83.5 per cent of private investors holding its government bonds were participating in a bond swap. Of the investors holding the €177-billion ($234-billion U.S.) in bonds governed by Greek law, 85.8 per cent joined.

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