IIF co-chairs, Charles Dallara and Jean Lemierre, issued a statement welcoming the results of the voluntary debt exchange by Greece which was announced this morning by the Greek authorities.
The recorded high rate of participation of 83.5 per cent (€172 billion out of the total €206 PSI eligible bonds) demonstrates the merits of the understandings reached between the Steering Committee and the Greek authorities and the euro area official sector on February 21 on the terms and conditions of the voluntary debt exchange package. Of special significance to investors is the fact that the package includes the use of English law and a co-financing structure with the EFSF loan to Greece, as well as GDP-linked securities in the event of higher Greek growth than anticipated in the economic programme. The understandings underscore the validity of resolving even the most difficult sovereign debt problems through cooperation and good faith negotiations.
The debt exchange results, and the associated unprecedented upfront nominal reduction in the privately-held Greek debt, will catalyse the strong financial official sector support for Greece’s new three-year reform programme. We are firmly of the view that the new programme will provide Greece with breathing space to implement the broad range of fiscal and structural reforms needed to restore output and employment growth and pave the way toward regaining market access.
This announcement does not constitute an offer of securities for sale in the United States, Australia, Canada or Japan or elsewhere. Any securities which are the subject of the offers referred to above will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to US persons absent registration or an exemption from the registration requirements of the Securities Act. Any offer of securities is being made only by means of an invitation memorandum made available by the Hellenic Republic to persons eligible to receive the invitation memorandum and the offer of securities made therein.
Press release
© IIF - Institute of International Finance
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article