Good news from Greece, but the story is far from over

It looks like Greece will remain in the Euro. For now at least. Photo: REUTERS

The breaking news this morning is that 85.8 per cent of private creditors of Greek bonds have accepted the Greek government's offer and that this rate will reach 95.7 per cent with the use of collective action clauses to enforce the deal.

This is a Good Thing: it opens the way for bailout cash and averts the immediate crisis there.

European shares are up this morning for the third day in a row. Credit: REUTERS

However, no-one knows whether it counts as a 'credit event' because of the coercion.

If authorities agree it's classed as an event (a default) then a type of insurance called credit default swaps (still with me?) kick in - with major financial fallout possible.

One broker on the wires this morning says, "we don't know who the losers are."

The political impact of the austerity measures will been seen in months and years to come. Credit: REUTERS

The Greece story isn't over and the political and social impact of austerity will continue to rumble on.

Everyone I talk to expects further bailouts will be needed before Greece exits the euro after all.

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