AnonymousApr 4, 2012 06:17 AM
I think Sahinidis was referring to compensating the GREEK retail bondholders. He said that this was not possible otherwise lawsuits will come from many other countries hence in order "to protect the country from legal complications" they will not be compensating the Greek retail investors.
He was not referring to potential litigation from the foreign law bondholders when they default on them.
That's the absurd: they don't care about litigation from the foreign law bondholders (they don't want to pay them) but they do care about litigation from others should they compensate Greek retailers (they don't want to pay them either).
Matador
ReplyHe was not referring to potential litigation from the foreign law bondholders when they default on them.
That's the absurd: they don't care about litigation from the foreign law bondholders (they don't want to pay them) but they do care about litigation from others should they compensate Greek retailers (they don't want to pay them either).
Matador
AnonymousApr 4, 2012 07:58 AM
It would be very hard politically to pay any bond in the near future. My guess is that they will go for Failure to pay now and pay up later in the coming years after litigation.
ReplyAvoid PSIApr 4, 2012 08:46 AM
For them it will be cheaper to pay in full and at the same time try to buy holdouts in the market. Specialy the long term maturities will be possible to buy with a discount.
I see no chance for Greece in litigations as long they pay other bonds like ECB hold ones...
And for them within the European Union it will be a desater to fight against a levy of execution on payments (like payouts of EFSF loans, money from the EU, payout of EIB loans)
Greece is in the EU and not in south america.
And 2nd the try to get a tax agreement with the Swiss government. THis they can forget if they default on the Swiss bond. In the end there will be 5bn EUR holdouts and there they have to pay 80%... that means 4bn instead of 2,5bn...
..they should be happy that they got the PSI so far!
ReplyI see no chance for Greece in litigations as long they pay other bonds like ECB hold ones...
And for them within the European Union it will be a desater to fight against a levy of execution on payments (like payouts of EFSF loans, money from the EU, payout of EIB loans)
Greece is in the EU and not in south america.
And 2nd the try to get a tax agreement with the Swiss government. THis they can forget if they default on the Swiss bond. In the end there will be 5bn EUR holdouts and there they have to pay 80%... that means 4bn instead of 2,5bn...
..they should be happy that they got the PSI so far!
Asked about the bondholders issue, the Finance Minister said that the PSI is still in progress, and "we must protect the country from legal complications".
This sounds not like they want to default.
And regarding the ethical issue. It sounds for me strage that the Greece government has any conscience. They will only have a look what is the best for them
“We are standing on an ethical pedestal here,” said Petros Christodoulou, the head of Greece’s debt management agency who is overseeing the mechanics of the country’s debt restructuring effort. “We speak with one voice with our official sponsors. This is as good an offer as the bondholders are ever going to get.”
If they want to treat everybody equal why these bonds did not participate in the PSI?
Hellenic Republic: JP530000CR76, JP530000BS19, JP530000CS83, IT0006527532, GR0326040236, GR0514017145, GR0514018150, GR0514019166
Hellenic Railway: JP530005ASC0, JP530005AR32
and don't ask for the ECB, EIB and national central banks... I think after the 18th of april they will announce an succesfull PSI and it will be very quite. The spook will be over!
...till the next Troika visit ;-)