BRUSSELS Feb 28 A Greek bond swap scheme
with private creditors had already taken into account credit
rating downgrades such as Standard & Poor's decision on Monday
to lower Greece to 'selective default', Eurogroup President Jean
Claude Juncker said in a statement.
S&P cut the country's long-term ratings to 'selective
default', the second ratings agency after Fitch to proceed with
a widely expected downgrade after Greece announced a bond swap
plan to lighten its debt burden.
Juncker said that euro area member states had taken measures
to make instruments issued by the Greek government eligible for
collateral in monetary policy operations.
"I look forward to a high participation of private creditors
in the PSI operation and take note of S&P's intention to upgrade
the lower ratings following the settlement of the bond
exchange," Juncker said.
Greece launched a bond swap on Friday under which bondholders
will take losses of 53.5 percent on the nominal value of their
Greek holdings, with actual losses put at around 74 percent.
(Reporting By Robert-Jan Bartunek and John O'Donnell; Editing
by Kim Coghill)