Here is how the trick worked: Private creditors were haircutted and the CDS (credit default swaps) were activated for the largerst organizations that could afford having them in the first place.

Smaller creditors were stiffed. Foreign Goverment entities were exempt and foreign institutions (pension funds etc) could buy at 30-40% percent the defaulted bonds. Said foreign Governments had ofcourse the inside information that they would give the Greeks the money to repay in full price their debt. That was hidden from the other investors during the start of the program.

I will preface this by saying that I am totally not sure, but my impression was that the EU and IMF loans were to enable Greece to repay creditors in full or close to.

Greece got a debt cut around 140B already.