Greek default shouldn't cause bond insurance claim

[July 22, 2011]  BRUSSELS (AP) -- A trade organization dealing in financial derivatives says a new rescue deal for Greece should not trigger payment of default insurance -- easing a key concern for Greek and European leaders seeking contain the continent's debt crisis.

David Geen, general counsel at the New York-based International Swaps and Derivatives Association, said that since private sector involvement in the deal was "expressly voluntary, it should not trigger CDS," or credit-default swaps.

The response came despite a decision by Fitch ratings to put a default rating on Greece's government bonds.

Geen e-mailed the comment to the Associated Press from London on Friday.

[Associated Press]

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