Greece has closed a landmark deal with bondholders to help ease its debt burden, in a move that could see investors take on losses of up to 74%.
The Greek government said on Friday morning that 85.8% of its bondholders had agreed to the swap offer, without which the European Union and IMF said Greece would not receive a £110bn bail out.
Greek Finance Minister Evangelos Venizelos thanked creditors, saying: "On behalf of the republic, I wish to express my appreciation to all of our creditors who have supported our ambitious programme of reform and adjustment and who have shared the sacrifices of the Greek people in this historic endeavour." he said.
If the swap had not gone through the country would have faced a debt default during a bond redemption.
The credit deal will cut Greece's national debt by 107bn euros.
The deal will halve Greece's debt burden and allow it to receive its second bailout.
But according to Michael Kemmer, general manager of German bank association BdB, the swap does not mean Greece is automatically "saved":
"We can't think that Greece is saved and the crisis is over. This is an important step - the private sector showed solidarity. That's good, but the work has only just begun.
"Despite all the justified happiness about this issue we have to note that Greece is only buying time with this and has to do its homework and pursue budget consolidation, savings and its privatisation programme," he told Bloomberg.