Key creditors holding a bloc of more than 39 per cent of privately held Greek debt said yesteday they would take part in a bond swap, a condition for an overall bailout to save Greece from default.

Banks, insurers and investment funds holding debt issued under Greek law must decide by 10 p.m. today whether to write off half of the money owed

Thirty companies on a committee of private investors that helped negotiate the swap deal said they “strongly support the recent agreements among Greece, Euro Area authorities and the IMF.”

The investors, part of the Private Creditor-Investor Committee for Greece, hold €81 billion in Greek debt “or 39.3 per cent of the €206 billion total PSI eligible debt,” a statement from the group said.

Banks, insurers and investment funds holding debt issued under Greek law must decide by 10 p.m. today whether to write off half of the money they are owed under the so-called Private Sector Initiative (PSI).

At least 75 per cent of eligible debt under Greek law must be tendered for the swap to go forward.

Greece has warned that rejection of the hard-won agreement could cost investors much more in the longer term.

The deal would wipe €107 billion off Greece’s debt and unlock a €130 billion rescue package from its eurozone partners.