The voluntary exchange of existing Greek bonds with longer duration debt by the Eurozone state officials and banks is expected to be concluded within a short time span to reduce the period of time when Greece would be under restrictive default.
Greece would come under the selective default category at the time when the voluntary debt swap programme is being conducted.
The country's private sector will suffer a loss of 21 percent on their Greek bond investments on account of infusing 37 billion euro into the ailing Greek economy over the coming three years.
The Greek second bailout package would include Greek debt exchange plans, which would see the shorter duration debt instruments being replaced by ones with longer duration, rolling over of existing Greek debt for over 30 years and re-purchase of Greek bonds from the secondary market.
The Eurozone agreed on a second bailout package for Greece on Thursday which included $ 109 billion Euros of state official loans and 50 billion Euros from the private sector.
The Eurozone officials will now meet in the middle of September this year to discuss the progress on Greece.
In the meantime, discussions are being held on the specifics of the Greek debt swap program between a European union working member committee, the Government of Greece and the International Institute of Finance (IIF), which is a bank and financial institutional representative group.