Greece submits its debt write-down offer to creditors

Greece's Finance Minister Evangelos Venizelos
Image caption Greece's Finance Minister Evangelos Venizelos is continuing to lead cost-cutting work

Greece has submitted its debt write-down offer to private creditors, a key part of its bailout agreement with the European Union and International Monetary Fund.

Under the proposed debt swap, banks and other private creditors are being asked to take a 53.5% loss on their Greek bonds.

If they agree, it will wipe out 107bn euros (£90bn; $142bn) of Greece's debt.

It comes a day after the Greek MPs approved the planned write-down.

Earlier this week, eurozone countries agreed to give Greece a new 130bn euro loan in order to bring Greek debt down from 160% of GDP to 120.5% of GDP by 2020.

Without a further loan, Greece stands to default on its debts on 20 March.

In return, the Greek government is continuing with extensive cost-cutting measures.

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