Thursday October 23, 2014 Search
Weather | Athens
22o C
16o 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)  
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Global oil price drop sends local fuel prices back to 2010 levels
Buy big house, become a citizen
Cyprus seeks EU response over Turkey´s EEZ violation
Cyprus is to raise the issue of Turkey’s violation of its exclusive economic zone (EEZ) at Thursday’s European Council meeting after Turkish Prime Minister Ahmet Davutoglu raised the specter...
Thirteen indicted for inmate torture
Thirteen correctional officers and their former warden will stand trial in Serres, northern Greece, over the death of Albanian inmate Ilie Kareli on March 27 at Nigrita Prison. Kareli was tr...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOK’s George Papandreou ma...
EDITORIAL
Taking care of our key industry
It’s time to face facts: Tourism is the country’s heavy industry. The sector’s considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Roberto´s heroics make Kasami´s goal count
2. Athens weighs its LNG and CNG options
3. Greece ranks among global leaders in tourism growth
4. Global oil price drop sends local fuel prices back to 2010 levels
5. Buy big house, become a citizen
6. Cyprus seeks EU response over Turkey´s EEZ violation
more news
Today
This Week
1. At least 11 banks to fail European stress tests, three in Greece, report says
2. Cyprus to block Turkey's EU talks after EEZ violation
3. EU’s Juncker wins Commission-team approval with investment vow
4. Juncker’s EU commission team set for parliamentary green light
5. Taprantzis resigns from privatization agency TAIPED
6. Fallen tree, smashup cause traffic jams in Athens
Today
This Week
1. Istanbul skyscraper casts shadow over Greece's banking ambitions
2. Coalition shooting itself in the foot
3. Greece’s closed society is central to its current malaise
4. Greece must stick to reforms, says Schaeuble
5. The past, present and future of the Greek debt crisis
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.