The so-called "world's biggest debt-restructuring deal in history"[11][12]: 1 affecting some €206bn of bonds, occurred in February 2012, when the Eurogroup finalized a second bailout package for Greece.
[13] Part of that deal was the agreement for private-sector involvement (PSI), whereby private investors were asked to accept to write off 53.5% of the face value of the Greek governmental bonds they're holding, the equivalent to an overall loss of around 75%.
[20] During the following years, Eurosystem central banks were subsequently paid back at face value,[21] generating a substantial 18 billion euros of profits, which were partly retroceded to the Greek government.
[22] Certain official measures executed during Greece's state debt restructuring process and the subsequent private sector involvement were not covered by existing ISDA provisions for CDS contracts, as the International Monetary Fund conceded.
[12]: 33 Therefore, according to the IMF, the typically expected credit event was not officially triggered, the negative contingencies to private holders of state debt were increased, while the credibility of the sovereign-CDS market was undermined.