The ISDA will have a challenge on its hands labeling a Greek default a voluntary haircut when the Greek private creditors' loss reaches 95-100% in another 6 months.
Greece's private sector creditors could take a loss of more than 70 percent in a planned debt swap, Finance Minister Evangelos Venizelos said on Tuesday.
"There is a very serious discussion based on new facts. We are talking about a PSI much greater than the original," he told lawmakers, referring to private sector involvement in the deal.
"We are talking about a haircut on the net present value exceeding 70 percent," he said.
Hey, as long as the ISDA isn't going to label it a default anyways, we might as well GO BIG and tell creditors to shove it, right?