ΠΑΡΤΟΝ ΚΑΙ ΣΤΟ ΓΑΜΟ ΣΟΥ ΝΑ ΣΟΥ ΠΕΙ ΚΑΙ ΤΟΥ ΧΡΟΝΟΥ! ΙΙ Η ἀνικανότητά τους εἶναι παροιμιώδης!

Η φίλη κ. Αμαρυλλίς Δεληγιάννη μου έστειλε το εξής mail.
Λόγω του μεγέθους του ίσως δεν μπορούσε να μπει ως σχόλιο.
Την ευχαριστώ και το δημοσιεύω ως χωριστή ανάρτηση!!
Συμφωνώντας με τους  Φινλανδούς να τους παραχωρήσει χωριστές εγγυήσεις ο Καθηγητής Νομικής και Υπουργός κ. Βενιζέλος δεν εγνώριζε ότι το συγκεκριμένο δάνειο διέπεται από το Αγγλικό Δίκαιο που δεν επιτρέπει τέτοια κολπάκια!!
Αλλά την απίστευτη αυτή ανοησία της Κυβερνήσεώς μας έπρεπε να την πληροφορηθούμε από το Blooberg;
Τι ρόλο παίζει η Αντιπολίτευση και κυρίως η Αξιωματική;



Το mail της κ. Δεληγιάννη.


Δεῖτε τὸ ἐκπληκτικὸ σχόλιο: Their incompetence is legendary! Δηλαδή, ἡ ἀνικανότητά τους εἶναι παροιμιώδης!  Δυστυχῶς ἐννοεῖ τὴν ἑλληνικὴ κυβέρνηση...

By John Glover

 

Aug. 25 (Bloomberg) -- Finland ’s demands for collateral on loans to Greece may trigger a default on 18 billion euros ($26 billion) of bonds sold by Europe ’s most-indebted country.

The securities, which represent less than 7 percent of Greece ’s 286 billion euros of bonds, are governed by English, not Greek, law, and include conditions that insist on equal treatment for all investors.

Giving collateral to Finland as a condition for aid may breach the requirement that fresh debt doesn’t win repayment priority over existing notes.

 

“I am pretty sure the Greek government didn’t even know this, their incompetence is legendary,” said Andreas Koutras, an analyst at InTouch Capital Markets Ltd., a London-based fixed-income adviser. “One should be very careful when giving securities or other collateral, like the Greek government is with the Finns.”

 

Finland said this week it’s open to renegotiating its Aug. 16 agreement to take collateral in exchange for contributing to Greece’s second bailout, after a backlash prompted similar demands from countries including Austria and the Netherlands.

 

Greek bonds fell yesterday on concern the squabble may delay aid, with yields on two-year notes rising to a euro-era record of 44.03 percent. Ten-year yields climbed to 17.9 percent, also close to a record, driving the yield gap to German bunds to 15.7 percentage points from 12 percentage points a month ago.

 

Floating Terms

 

Tim Haywood, a London-based fund manager who helps oversee about $68 billion at GAM Holding AG’s asset management arm, owns the Greek bonds issued under English law. According to terms of the floating-rate notes due May 2012, he’s ranked equally with Finland and other creditors that are claiming priority.

 

“It is my fervent hope we will be fully repaid,” Haywood said. “If not, I expect no one else to be.”

Greece received a three-year, 110 billion-euro rescue in 2010 from the European Union and International Monetary Fund.

The nation sought another bailout this year as its economic woes stymied plans to return to the capital markets in 2012 and private investors were asked to participate.

The plan, drawn up by the Institute of International Finance, the bankers’ lobby group, offers bondholders four options to exchange their sovereign debt at a discount for fully or partially collateralized notes.

Providing collateral to lenders seeking agreement on terms for 159 billion euros of additional aid risks making the new loans senior to the existing international bonds.

 

Repayment Priorities

 

The Finnish government said earlier this month it reached an accord on collateral to ensure its contribution to the bailout is repaid. German Chancellor Angela Merkel rejected calls from lawmakers for Greece to provide collateral.

By giving in to demands for collateral, Greece risks triggering the so-called negative pledges in the documentation of the international bonds, said InTouch’s Koutras. The notes were issued in dollars, Swiss francs, Japanese yen, as well as in euros.

“So long as any note remains outstanding, the Republic shall not create or permit to subsist any mortgage, pledge, lien or charge upon any of its present or future revenues, properties or assets to secure any external indebtedness,” according to the prospectus for Greece’s 2012 bond.

The wording is repeated in the documentation of other international bonds, including 5.6 billion euros of floating rate notes due 2016. The securities trade at about 52 cents on the euro, according to Bloomberg Bond Trader prices.

 

Event of Default

 

Failure to respect “any covenant, condition or provision set out in the notes” is an event of default, according to the prospectuses.

A default would allow bondholders to demand immediate repayment of principal and accrued interest, and trigger cross- default clauses on other international borrowings. It also may trigger credit default swaps protecting Greek sovereign bonds, an event that’s anathema to European leaders working on the bailout, Koutras said.

 

The Greek and European authorities and their advisers are “fully aware of the issue,” Thomas Gerassimos, director of finance issues at the European Commission in

  Brussels , said in an email. “Any follow-up will make sure that negative pledges will not be affected.”

Gerassimos referred enquiries to Petros Christodoulou, director general of the Greek debt management office in Athens, who didn’t return two calls seeking comment.

 

Debt Rescue

 

The documentation may provide leeway to avoid default by putting the same collateral on both current debt and the rescue loans, according to Tom Jenkins, an analyst at Jefferies International Ltd. in London .

Securing other loans is forbidden “unless the notes shall also be secured by such mortgage, pledge, lien or charge,” on an equal basis, according to the documents.

Some of the bonds, such as the 5.6 billion euros of floating-rate notes due 2016, have collective action clauses allowing a set majority of bondholders to force all investors to accept any offer penalizing them, Bloomberg data show.

Greek banks hold large amounts of the securities and will do as the government tells them, said Bill Blain, a strategist at Newedge Group, a London-based brokerage. Demands for collateral by Finland and others may have more to do with domestic politics than any real hopes of getting it, he said.

“The Greek banks are going to do exactly what they’re told to,” Blain said. “When Greece defaults, holders of these things will see their goose cooked in exactly the same way as everyone else.”

While Haywood’s bonds have investor-friendly negative pledge and cross-default conditions, they don’t have a collective action clause, Bloomberg data show.

“A negative pledge is very useful for bondholders, especially where the bonds involved are a small amount relative to the total,” he said. “That makes the cost to the issuer of fighting a legal action very high, because foreign law is involved. We expect equal treatment with official creditors.”