IIF: PSI to be completed in a few hours

The belief that there will be a very high percentage of private sector involvement in the exchange of Greek bonds (PSI), was expressed by the head of the Institute of International Finance (IIF), Charles Dallara.

“I have managed, in recent months, to avoid giving specific figures on the turnout, and will disappoint you by continuing to do the same”, said the head of the IIF from Rio De Janeiro, stressing however that he believes that the participation will be “very very high”.

At the same time, he stated that some creditors may still be in the bid evaluation process, but as stated, they should take into account that the Greek government is literal when it says that this is the final offer.

At the same time, according to Finance Ministry sources, the voluntary exchange process of bonds under Greek law is perhaps higher than 80%.

This indicates that the process involves bondholders who hold securities of 143 billion out of a total of 177 billion.

If the participation rate reaches 90%, it is likely that the CACs will not be activated so that there is no credit event and risk premiums are not paid against the financial failure of the country, in which approximately 70 billion have been invested. In the event of payment, approximately 3 billion dollars will be paid.

However, the activation of potential risk premiums (CDS) in Greek bonds is a situation that the ISDA is preparing for.

For argument’s sake, for several hours the ISDA website has been sporting a preliminary list of “obligations” on the series of bonds issued and guaranteed by the Greek state which will be covered, ie will be paid to beneficiaries of the risk premium in the case of credit events.