Court vindicates Greek bondholder over PSI
A justice of the peace court in Athens has ordered the government to pay 13,875 euros in damages to a retail bondholder who lost her savings during the public debt restructuring of 2012, also known as Private Sector Initiative (PSI).
The plaintiff, a bank employee and mother of two, had invested 25,000 euros of her savings in Greek bonds before they were restructured three years ago.
The court ordered the bank who sold her the investment to pay damages.
This was the first decision by a Greek court vindicating an appeal by a retail bondholder. However, it is unclear whether this verdict will have an impact as the Council of State, Greece’s highest administrative court, has already deemed the 2012 debt restructuring to be legal.
