Greek Swaps Sellers to Pay $2.5 Bln

Settlement set after auction values Greek bonds at 21.5% of face value.

Sellers of credit-default swaps on Greece will have to pay as much as $2.5 billion to settle contracts triggered by the nation’s debt restructuring.

The settlement was determined after dealers agreed a final value for Greek bonds of 21.5 percent of face value at an auction, according to administrators Markit Group Ltd. and Creditex Group Inc., and is in line with where the notes have been trading.

Trichet Opposition

Former European Central Bank President Jean-Claude Trichet led opposition to triggering Greek swaps on concern traders would be encouraged to bet against failing nations and profit from the region’s sovereign debt crisis.

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