"If the PSI does not take place, there will be no pensions"

Finance Minister Evangelos Venizelos appeared certain about the positive outcome of the bonds exchange program, stressing that Greece will disappoint doomsayers, who are trying to cancel out any attempt by our country to solve both its problems and the Eurozone’s alike.

At the same time, he denounced the administrations of pension funds who refuse to participate in the PSI, stating that without the exchange of bonds, there will be no pensions.

Speaking on the Real FM radio station, the Minister of Finance asked what message the country is sending when the international market finds the offer tempting, while some pension funds unionize, and he warned that if the PSI is not achieved, the social security funds' bonds will be worth nothing.

“The management of funds who do not adhere to the haircut are dragging policyholders and pensioners down with them”, he stated, while replying to a comment by the General Secretary of the Communist Party, Aleka Papariga, who noted that the PSI will be felt in pensions. The Minister’s reply was: “If the PSI does not take place then we will have no pensions at all, because we will not have any money to pay them out with”.

He noted that despite the participation of major banks in the program of Greek debt impairment, the participation of pension funds remains a thorn in their side, the reserves of which are invested in bonds by the BoG, amounting to 22 bn euros.

On Wednesday, during the TEADY participation in the PSI, the majority of the Fund Board appeared against such participation. Specifically, seven out of nine board members said “no” to the bonds haircut and the Fund’s administration is expected to be negative.

ADEDY unionists moved to a show of protest today outside the offices of the Fund, requesting an exemption from the haircut.

Moreover, PAME members discontinued the OAEE board meeting, temporarily delaying a decision by the administration of the Fund on whether to participate in the PSI or not. Eventually, OAEE said “yes” to the participation, with bonds worth 160 million euros.

In a Tuesday meeting of pension funds, five were negative on PSI+ participation. These are TEAIT, ETAA, ETAP-MME, TAPYT and TEAPASA.

These funds hold bonds up to 3.5bn euros, out of 6.5-7 bn in bonds that are self-managed by the funds themselves.

A positive decision was made by OPAD, IKA, OGA, TAYTEKO, ETEAM and TPDY.