Venizelos meets with bankers on the PSI

The heads of administrations of major Greek banks have been called for an urgent meeting today at 19.30, during which Finance Minister Evangelos Venizelos will speak with them about the process of the bonds “haircut”.

Information from relevant sources mentions participation of 75% to 80% in a development which, if there is no dramatic increase in the rate during the process itself, should lead to the activation of Collective Action Clauses (CACs) so participation can reach 90% with a compulsory participation of the unwilling.

Mr. Venizelos is expected to ask the bank heads about the issue which has arisen with the exemption from the haircut of bonds given to DEKO such as OSE, EAS and OASA, the value of which reaches 8 billion euros and whose inclusion in the exemption provision was revealed by Proto Thema on Sunday. According to reports, some of the banks have no objection to the inclusion of such loans in the PSI, in order to enhance the participation rate.

Finance Commissioner Olli Rehn and the governor of the Bank of Greece, George Provopoulos, expressed their optimism earlier.

IIF head Mr. Charles Dallara warned the markets that the cost of a Greek default would reach 1 trillion.