If you thought the Greek financial mess was solved, think again.

The deal required Greece to get 95% of bondholders 50% cut in their holdings and accept new bonds with a lower premium by next Thursday. It doesn't look like that is going to happen. If the deal is imposed on bondholders, Greece will likely declared in default by credit rating agencies. This may bar them from getting the $170 billion loan they need to pay the bills.

Via Telegraph:

Authorities in Athens are ready to enforce the controversial collective action clauses, or CACs, to impose the restructuring deal on all bondholders as the number of voluntary agreements look set to fall short of the required amount.

Credit rating agencies have warned they will declare Athens to be in default if the CACs are triggered which would be a dramatic culmination to a three-year rollercoaster ride for Athens, the eurozone and global markets.

While the markets have been ready for a Greek default for months, the move could leave Greece and its banks barred from funding from the European Central Bank (ECB). On Monday, Standard & Poor's declared Greece to be in a state of "selective default" which led to the ECB announcing it would no longer accept Greek government bonds as security for new loans.

The rating agency said its decision had been prompted by the threat of the CACs and the actual use of them is likely to tip Greece into actual default. The agency said it regarded the process as a "distressed debt restructuring".

Raoul Ruparel of Open Europe, the London-based think-tank, said: "Greece is likely to struggle to reach the targets for a voluntary agreement so the credit rating agencies are almost certainly going to see this as a default.

"What happens next is unknown territory. Read more here...