Greece has not triggered a payout on credit default swaps by its recent moves to prepare for a debt restructuring, the International Swaps and Derivatives Association said on Thursday.
The ruling means holders of these insurance contracts, worth a net $3.25 billion, will not receive payment at this stage, though further rulings based on any new questions are still possible.
The committee was asked to consider whether a ‘credit event’ had occurred as a result of new Greek legislation that could force all bondholders to accept losses and after the European Central Bank took steps to avoid losses on its Greek bonds.
The 15 ISDA committee members voted unanimously that this did not meet the ISDA definition of a credit event.
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