One suggestion is that existing bonds be exchanged for cash at 15% of their value and with new bonds at 35% but which will fall under the legal form of troika’s lending, which cannot undergo any haircut.
If this proves successful then the cut will be around 50%. Also, there has been no agreement on interest rates, where the difference between the two proposals amounted to 3 percentage points.
Note that the final result is crucial regarding the participation percentage of foreign banks and funds to avoid a credit event. For this reason the Greek government is considering activating the Collective Action Clauses that aim at the legal cover of a generally enforced haircut.
But even in such a case, it is uncertain that a credit event will be avoided. Either way, if the government persists at very low interest rates and raise the height of the haircut at current values, then everything is possible.