Brussels meeting allays Greece default fears

A protester stands behind a mock boat with a portrait of German Chancellor Angela Merkel on the bow during an anti-austerity rally outside the EU offices in Athens February 29, 2012. (Reuters / John Kolesidis)
A complete Greek default may not be as near as many people have feared. The International Swap and Derivative Association (ISDA) says it won’t pay out insurance to Greece’s private creditors for the €100bln they had to write off.

The refusal effectively means ISDA isn’t that pessimistic about the quality of Greek Government bonds, which may come as a temporarily relief for the country. Private creditors on the other hand won’t be able to get their money back.

The news comes from a two day meeting of EU member states where they are discussing the Greek problems.