28 November 2011

IIF: Private Creditor-Investor Group on Greece forms Steering Committee to pursue bond negotiations

Following a decision made at a meeting in Frankfurt on November 17 to form a new Private Creditor-Investor Committee on Greece, the group has now appointed a Steering Committee to conduct negotiations on a voluntary PSI for Greece with the Greek and euro area authorities.

The co-chairmen of the Steering Committee are Mr Charles Dallara, IIF managing director, and Mr Jean Lemierre, senior advisor to the chairman, BNP Paribas.

The Private Creditor-Investor Committee for Greece encompasses the bulk of the private sector holders of Greek Government bonds.

Mr Dallara stated: “We look forward to entering a new phase of negotiations with the Greek and the euro area authorities in the near future in order to finalise the details of a voluntary restructuring of Greece’s sovereign debt. We remain committed to reaching a voluntary PSI agreement on the basis stated in the October 27 Brussels communiqué of the heads of state that calls for collective, common efforts by the Greek and euro area authorities and private investors to develop the agreed upon bond exchange by the end of the year.”

Mr Lemierre noted: “We welcome the formation of the Steering Committee that can advance the goals of the Private Creditor-Investor Committee in negotiations with the authorities. Our work will build on the voluntary agreement that was reached in Brussels that entails a voluntary 50 per cent upfront nominal debt reduction of the privately-held Greek Government bonds and the provision of euro area official support of €30 billion for credit enhancements under the PSI.”

30 institutions have agreed to become members of the Private Creditor-Investor Committee to-date and more are expected to join. The IIF serves as the Secretariat to the Committee.

Press release

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