The body representing Greece΄s private-sector creditors said Tuesday it recommends they “carefully consider” a new deal forcing them to accept a bigger loss on their holdings of Greek bonds, according to Dow Jones.
The International Institute of Finance said it viewed the deal “as building upon, and being broadly consistent with, the voluntary agreement reached with euro-area authorities and the [International Monetary Fund] in Brussels on October 27, 2011.”
It stopped short of any clearer endorsement of the deal, which will force bondholders to waive 53.5% of their principal under a massive debt swap that will cut Greece΄s outstanding debt stock by EUR107 billion. At summits in October and December, the IIF had agreed to accept a write-down of 50%.
For every EUR100 in bonds tendered in the debt swap, bondholders will receive new Greek bonds with a face value of EUR31.5 and short-term paper issued by the European Financial Stability Facility with a face value of EUR15.
The new bonds will have maturities of between 11 and 30 years, “replicating an amortization of 5% per annul commencing in 2023,” the IMF said.
The coupon on the new Greek government bonds will be 2% for the three-year period from February 2012 to February 2015; then 3% for the following five years, from 2015 to February 2020; and 4.3% for the period from February 2020 to February 2042. The weighted average coupon for the first eight years will be 2.63%, and will be 3.65% over the full 30-year period, the IIF said.
(source: Dow Jones)
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
