By Simon Miller

The eurogroup has released €35bn of money to Greece as the Greek government agrees on collective action clauses for the remaining hold-outs.

The decision to release the second tranche of money came after the Greek cabinet agreed to trigger the CACs as the best possible option to maximise take-up of the debt swap.

In a statement this afternoon, head of the eurogroup Jean-Claude Juncker said it had noted the offer period extension for bonds governed by foreign law and expected participation rate to increase.

He added: "Against this background, the disbursement of the euro area's contribution to the PSI operation in the form of EFSF bonds for the settlement of the Greek-law bonds as well as the accrued interest on the exchanged bonds can proceed as planned."

Juncker continued: "The eurogroup considers that the necessary conditions are in place to launch the relevant national procedures required for the final approval of the euro area's contribution to the financing of the second Greek adjustment programme."

The cabinet's decision was expected after 85% of debt holders have agreed to the swap, meaning participation will rise to 95.7% after the CAC.

However, one German retailer investment association has accused teh enactment of the CAC had turned a voluntary restructuring into a forced restructure which would "reduce the eurozone to the status of a banana republic".

Board member of the German Association for the Protection of Investors Daniel Dauber told reporters that the group was looking into possible legal action against "forced expropriation".

Meanwhile, the International Swaps and Derivatives Association has yet to decide whether the enactment of CACs consituted a credit event, triggering credit default swaps.

The association has been meeting all afternoon to discuss the issue and at the time of writing (17.00GMT), no decision had been released.

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