NOTICE TO MEMBERS
Subject: Petition 1480/2012 by O. K. H. K. (German), concerning compulsory
reduction in the value of Greek Government loan stock held by small
investors
1. Summary of petition
The petitioner expresses concern that small investors holding Greek Government loan stock
are being forced to accept a reduction in its face value and unfavourable capital and interest
repayment terms. He argues that investors were entitled to expect full repayment, pointing out
that the compulsory ‘haircuts’ were discussed with the major banks and institutions only and
that the small investors themselves were not consulted. Furthermore, they have no means of
redress or channels of appeal against the measures taken by the Greek Government, since no
firm of lawyers would be willing to accept the case, while insurance companies assert that the
proceedings would not be covered by their legal aid policies. The petitioner wishes to know
whether legal certainty in the EU is possible if contracts can be retroactively altered overnight
without any form of consultation.
2. Admissibility
Declared admissible on 30 April 2013. Information requested from Commission under Rule
202(6).
3. Commission reply, received on 28 February 2014
The Commission is fully aware of the problems faced by many retail investors who had to
suffer reductions in the face values of their investments and unfavourable repayment terms.
It should be stressed however that, in line with the conclusions of the summit of the Euro
Area Heads of States and Governments on 21 July and 26 October 2011, the implementation
of the private sector involvement in the financing of the 2nd Greek economic adjustment
programme was the primary responsibility of the Greek authorities. It is thus for Member
States to ensure that their obligations regarding fundamental rights – as resulting from
international agreements and from their internal legislation – are respected.
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