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Centre for Commercial Law Studies

Dr Rodrigo Olivares-Caminal 'Banks likely to take part in Greek swap after writedowns'

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Analysts have said that Europe's largest lenders and insurers are likely to consent to the Greek debt swap because “they've already written down their sovereign holdings and want to avert the risk of a default”. As part of the plan to reduce Greece’s debt by 107bn euros, investors will forgive 53.5 percent of their principal and exchange their remaining holdings for new Greek government bonds and notes from the European Financial Stability Facility. Dr Olivares-Caminal comments to Business Week that the new bonds will be subject to English law, meaning further changes to the securities can only be made by agreement with bondholders. “It's a good protection for bondholders,” he said. “But Greece is in a worse position because it will not be able to change the rules of the game on an ongoing basis.” Read the full article on Bloomberg Business Week.

 

 

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