Greece Sets Minimum Take Up Rate for Debt Swap Plan

Greece said on Friday it would not go ahead with a debt swap crucial to its second bailout if private sector holders of less than 90% of the bonds participate, failing to satisfy its international partners.

Greece and banking lobby group IIF, which jointly coordinate the debt swap talks, had so far presented the 90% participation rate as a simple target and not as a condition.

The condition applies to the holders of Greek bonds maturing by 2014 or 2020, the government said in a letter sent to finance ministers around the world, according to a statement it posted on the web site of the Athens Stock Exchange.

"If these thresholds (or either of them) are not met, Greece shall not proceed with any portion of the transaction described in this letter if it determines, in consultation with the official sector, that the total contribution of private sector creditors toward the financing needs of Greece and Greece's debt sustainability resulting from this transaction is insufficient to permit the official sector to support the new multi-year adjustment program for Greece announced on July, 2011," the letter said.

(Reporting by Harry Papachristou; editing by Patrick Graham)