Tuesday Jan 27, 2015 Search
Weather | Athens
13o C
7o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
PSI agreement draws ever closer

 Banks accepted a 4 pct interest rate in new bonds while Greece gave in on use of British law

By Yiannis Papadoyiannis

A deal on the private sector involvement plan (PSI+) for the haircut on Greek bonds appears to be closer than ever as both sides - the Greek and European authorities and the banks - have given in on key issues, according to reports.

Sources concur that there is already an agreement, with banks giving ground on the issue of the interest rate, accepting a 4 percent coupon, and the government conceding that the new bonds will have a legal status similar to the loans Athens has received from the eurozone and the International Monetary Fund, i.e. under British law.

Finance Minister Evangelos Venizelos expressed his optimism about an agreement, telling an event organized by the Economic and Social Council of Greece (OKE) that negotiations are on a positive course and a deal is near.

However, he did add that the agreement will be completed only “if our institutional partners respect the October 27 decision that was confirmed on December 9 in the last summit meeting.”

Bank sources told Kathimerini that the efforts to find a solution have intensified in the last few days, emphasizing the absolute need for PSI+ to succeed. If that fails, given the country’s loan requirements in the first quarter of 2012, Greece will find itself at a dead end with unpredictable consequences.

They confirm that there has been significant progress in negotiations, but stress that the creditors’ committee which is conducting the talks on behalf of the private sector does not represent all of the investors concerned, and that there are various approaches to the issue. Yesterday a committee member from Vega Asset Management resigned.

There already are some alternative solutions on the table in case the private sector participation rate is limited. One of these options is the extension of the PSI to other legal entities such as industries and trade companies that hold Greek debt. Another is the forced participation of the minority that wanted to abstain from the PSI through a collective action clause (CAC).

Venizelos hailed the significance of PSI+, saying that it could shave some 100 billion euros off Greece’s debt, amounting to 47 percent of the country’s gross domestic product.

ekathimerini.com , Tuesday December 20, 2011 (22:59)  
Greek bonds continue post-election plunge
Mixed reaction from big investors to Greek election result
Turk-Cypriot says gas search should stop until Cyprus solution is found
Bank stocks lose 23 pct in just two days
Greek coast guard search for missing ferry passenger
Coast guard vessels and helicopters continued to search for a missing passenger from a ferry from Crete that docked at Piraeus shortly before 7 a.m. on Tuesday. There had been no sign of him...
Serres police seek thieves of contraband smokes
Police in Serres, northern Greece, were on Tuesday seeking the thieves that stole more than 100,000 packets of contraband cigarettes from a customs authorities warehouse in a break-in believ...
Inside News
BASKETBALL
Basket League favorites survive challenges on the road
PAOK consolidated its position in the top three of the Basket League with a triumph at AGO Rethymnou on Saturday, while Olympiakos and Panathinaikos emerged victorious from their tough away ...
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakos’s 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
Inside Sports
COMMENTARY
Greece, where everyone´s a winner
Whether a tradition or simply a bad habit, we have trouble finding a loser in any electoral race, a party leader who will openly concede defeat without trying to mitigate it with excuses. Th...
EDITORIAL
Political faux pas
Democracies have rules and institutions that must be respected and served by all who represent them. Most people can appreciate that politicians who have worked hard for the past two-and-a-h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek bonds continue post-election plunge
2. Mixed reaction from big investors to Greek election result
3. Turk-Cypriot says gas search should stop until Cyprus solution is found
4. Greek coast guard search for missing ferry passenger
5. Serres police seek thieves of contraband smokes
6. Bank stocks lose 23 pct in just two days
more news
Today
This Week
1. Greek Elections 2015: Forming a government, Part 1 | LIVE
2. Greece, where everyone's a winner
3. Three days of mourning declared over death of two Greek pilots in Spain
4. Greek uncertainty weighs on low-rated eurozone bonds
5. Political faux pas
6. Europe stocks fall from seven-year high; Greek bonds drop
Today
This Week
1. Greek Elections 2015 | LIVE
2. Greek Elections 2015 | LIVE
3. SYRIZA heads for historic victory but without majority
4. Greeks fork out nearly 5 pct of their incomes on telecom services
5. Unsupervised voting
6. QE exclusion a ‘de facto Grexit’
Advertiser Link
SMART WATER Project: Outputs and conclusions of the final conference
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.