Greece To Default

The Greek Debt Management Agency confirmed yesterday what everyone knew, namely that if a majority of bondholders agree to the deal it "intends... to declare the proposed amendments effective and binding on all holders".

This means that Collective Action Clauses (CACs) will be used, and that Greece will have defaulted.

However, the threshold required for a "majority" is 66%.

There is serious speculation that the 66% "majority" target will not be reached by 20:00GMT Thursday.

In the event that this target is missed, the whole plan fails and the Euro130BN bailout (which Greece has yet to receive) will be taken back.