IMF's Lagarde hails Greek debt swap (by Kim Hjelmgaard)

LONDON (MarketWatch)-- The International Monetary Fund's Managing Director Christine Lagarde said on Friday that Greece's deal with its private-sector creditors "was an important step that will dramatically reduce Greece's medium-term financing needs and contribute to debt sustainability." Lagarde added that "support by the private sector is a key component of the contribution by all parties to put Greece's economy on a path of growth and financial stability." Euro-zone finance ministers are expected to formally approve Greece's second bailout package at meeting on Brussels on Monday. The International Monetary Fund will also meet next week. On Friday, Greece said that 83.5% of its private-sector bondholders would participate in a debt-swap deal.

Juncker: Greece meets terms for second bailout (by Barbara Kollmeyer)

MADRID (MarketWatch) -- Conditions are in place for Greece to get its second bailout, said Eurogroup President Jean-Claude Juncker in a statement released Friday. "I welcome the significant progress achieved in the preparation of the second Greek adjustment program," said Juncker, after a teleconference between euro-zone finance ministers on Friday. He said he was encouraged by the high private-sector participation in Greece's debt-swap exchange offer, which will "make a significant contribution to improve Greece's debt sustainability." He said the Eurogroup was informed Greece will activate its collective action clauses for bonds governed by Greek law, which forces those holders into accepting the bond-swap offer.