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Greek Bondholders May Face 70% 'Haircut': Source

A person familiar with the negotiations to slash Greece's massive debt said private creditors participating in the deal would face an overall loss on their bondholdings of around 70 percent.

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CNBC.com

Athens and representatives of banks and other investment funds holding Greek government bonds over the weekend came close to a final deal designed to make Greece's debt sustainable.

That is a precondition for further bailout money for Greece from the eurozone and the International Monetary Fund .

The person said Monday that the 70 percent loss was produced by cutting the bonds' face value in half, reducing the average interest rate to less than 4 percent and pushing repayment of the bonds decades into the future.

The person spoke on condition of anonymity because the talks are confidential.

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