[Lurker]

If 95% of the bond holders agree to a 75% loss, that’s a default. Period.

[PapaBear3625]

They want to avoid the magic keyword, "default", because that triggers all the Credit Default Swap derivatives, and will cause major headaches for the banks.

I think they are just stalling until they figure out how to stick the West's taxpayers with the bill. Let Greece default now. The longer they delay, the bigger it will be.

[Razzz42]

http://www.isda.org/credit/

The ISDA determines and defines when a default occurs. This is the same organization that is made up of board members that also work for US major banks. The same banks that sold 95% of all outstanding credit default swaps (CDS). These CDS insured against country’s bonds failing, such as Greece.

If a default occurs, the big banks have to pay off on the insurance contracts and go broke in the process because they don’t have the money. So, ISDA will never declare a default unless they have a way of getting banks out from underneath their obligations.

Greece already defaulted recently, ISDA deemed it a nonevent.