Greek default looms as voluntary debt deal looks set to fail

Authorities in Athens are ready to enforce the controversial collective action clauses, or CACs, to impose the restructuring deal on all bondholders as the number of voluntary agreements look set to fall short of the required amount.

Credit rating agencies have warned they will declare Athens to be in default if the CACs are triggered which would be a dramatic culmination to a three-year rollercoaster ride for Athens, the eurozone and global markets.

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Greece needs around 95pc of its private creditors to accept the deal by the deadline on Thursday in order to secure its €130bn international bail-out package and avert imminent bankruptcy.

Greek politicians back the use of CACs -- which allow the deal to be imposed on all bondholders if 66pc agree to it -- being inserted retrospectively if the voluntary agreement falls short.