You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

Government: Major Greek banks agree on bond deal

LOUISA GOULIAMAKI/AFP

A civil servants union protested outside its pension fund yesterday, urging it not to participate in a Greek debt swap.

ATHENS - Greece’s six largest banks have agreed to participate in a crucial bond-swap deal, the government said Tuesday, in a boost for the struggling country as a deadline for the landmark agreement looms.

The Finance Ministry said the six banks have already agreed to participate or would recommend participation at board meetings Wednesday and Thursday. Though Greece still needs many more creditors to sign up by the Thursday deadline, the inclusion of some of the big banks is a relief for officials and potentially persuasive for smaller bondholders.

Continue reading below

The bondholders will lose 53.5 percent of the face value of their debt in exchange for new bonds with longer repayment deadlines and lower interest rates.

The bonds deal is vital to avoid default later this month and aims at cutting more than $139 billion off the country’s national debt.

The deal depends on near full participation by creditors, but if a large number agree to take part it can force any holdouts, and more interest is likely to come at the last minute. A dozen international banks had already signaled they would participate.

Greece was trying to step up the pressure on other private creditors to sign up.

The country’s Public Debt Management Agency issued a warning to potential holdouts on the agreement, which depends on high participation.

Loading comments...
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.