Greece warns bondholders - UPI.com Protestors against the new austerity measures clash with riot police in front of Athens University in Athens, Greece on February 10, 2012. ATHENS, Greece, March 6 (UPI) -- Greece said Tuesday that after it restructures its debt it can not guarantee there will be funds left to pay off private bond holders. The government said it "does not contemplate the availability of funds," to pay off bondholders who do not participate in the restructuring. The Financial Times reported a deal with bondholders is expected to cancel out $131 billion of Greek debt. That was one of the terms for an international loan of $170 billion set up by the International Monetary Fund, the European Central Bank and the European Union. For Greece to reach its target, 95 percent of private bondholders must participate in the plan. Former IMF official Charles Blitzer said, "There is no commitment not to pay, but there is a threat." For two years, financial and political leaders have been dancing around the term "default," which generally implies the country is not paying its obligations. But the term is given some flexibility if the bondholders volunteer to settle for less than what they are owed. Greece has, essentially, put bondholders in a corner, but the default label may be moot, as Greece's credit rating is in junk status at this point.