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The Committee for Europe, Africa and the Middle East to the International Swaps and Derivatives Association has decided unanimously that the Greek PSI or Private Sector Involvement is not a credit event and therefore, no credit default swaps should be paid to their holders. A group of creditors of Greece turned to the institution for an advice after it has become clear that the Greek government is going to trigger the collective action clauses CACs to require all private creditors to write off 53.5% of the net present value of the securities they are holding.
   Fifteen world banks and investment funds from the USA and Europe attended the Committee meeting and they have unanimously decided that the Greek PSI is voluntary and not mandatory and that the non-participation of the European Central Bank in it is not a credit event and therefore, there is no need of paying the credit default swaps.
    "Astonished the ISDA ruled no credit event in Greece. If THIS isn’t a credit event, dunno what is," commented the famous financial journalist and host of CNN Richard Quest on Twitter. "Common sense indicates that Greece has defaulted. It’s time everyone stopped pretending otherwise...especially the banks on the ISDA committee," also stated Richard Quest.