[Capt. Tom]

Under the deal, Greece will have around 100 billion euros of its obligations written off via a debt restructuring involving private-sector holders of Greek government bonds. The private sector - mostly banks and insurance companies - will swap bonds they hold for longer-dated Greek securities that pay a lower coupon, resulting in a real 70 percent reduction in the value of the assets.

That's a default right there.
I guess it could be said to be a slow motion default- or a controlled default. Like dropping a building down so as not to ruin the surrounding buildings. In this situation, surrounding countries. - tom

[Lurker]

I love the way only banks and insurance companies are “private sector” as if there are no individual investors involved.