Greece breathed a sigh of relief after the Eurozone leaders’ October summit, as the private sector accepted a “voluntary” bond exchange with a nominal discount of 50% on Greek debt. The haircut was well above the 21% previously agreed at the July meeting. In addition, the Eurozone confirmed the second bailout package and unblocked the sixth tranche of the current bailout package after the Greek authorities passed further austerity measures. Meanwhile, the economy remains mired in recession, with industrial production contracting 11.7% in August.
