By Simon Miller

The Greek parliament has voted through legislation to force private creditors to take the debt haircut.

Private debt holders are expected to take a 53.5% haircut on their bonds and the Collective Action Clause (CAC) is a vital piece of Greece's plans to push through €107bn (£91.7bn) in debt write-downs.

If 66% of creditors agree to the bond swap and haircut, Athens would then be able to activate the CAC forcing objectors to follow suit.

The coalition between PASOK and New Democracy basically guaranteed the legislation was passed following a debate in parliament.

"By approving this law, parliament will allow us to start getting out of the vortex," Finance Minister Evangelos Venizelos told MPs. "To succeed, we need to be united, serious, trustworthy, persistent and to work, work, work."

The swap offer will be made to bondholders by Friday and completed by 12 March before the 20 march deadline when €14.5bn of debt repayments are due.

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