Greece cabinet approve CAC

Greece activated new legal powers designed to force private-sector lenders to accept write-downs on bonds subject to Greek law, in a bid to secure nearly full participation in its debt restructuring.

Now path for ISDA (meeting to decide that a credit event has occurred seems clear.

Earlier Athens announced an 83.5% turnout in the country's EUR206 billion debt restructuring. The clauses would force up participation to 95.7%.

Private bondholders will swap their bonds for new ones at less than half their value as part of the debt deal, aimed at preventing a disorderly default by the troubled Mediterranean country.

Private-sector involvement was considered a precondition for support from other euro-zone states and International Monetary Fund in a EUR130 billion bailout loan--Greece's second emergency package since the crisis began.