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Economy
In reply to the discussion: STOCK MARKET WATCH -- Friday, 7 December 2012 [View all]Demeter
(85,373 posts)56. Greek banks seek buyback approval as deadline nears
http://news.yahoo.com/greece-shield-banks-buyback-lawsuits-finance-ministry-source-082443362--finance.html
Greece's biggest banks asked their boards to approve selling back as much as their entire holdings of national debt, banking sources said on Friday, putting Athens on track to meet a target set by its international lenders. The buyback scheme, in which investors must declare their interest by Friday, is central to efforts by Greece's euro zone and International Monetary Fund lenders to cut its debt to manageable levels by 2020.
Athens has pressured its banks, which hold an estimated 17 billion euros ($22 billion) of bonds out of the 63 billion eligible for the buyback, to sell and promised to shield them from any lawsuits by shareholders over losses from the scheme...The country's four biggest banks have each asked their boards to approve up to 100 percent participation in the deal ahead of the 1700 GMT deadline, two banking sources said.
"The proposals by banks to their boards were positive on the buyback offer, asking for approval to participate by up to 100 percent," said one banker, who declined to be named.
Board approval does not necessarily mean the banks will offer all of the Greek bonds they hold.... Under the scheme, Athens aims to spend 10 billion euros of borrowed money to buy back bonds far below their nominal value, in a bid to cut debt by a net 20 billion euros. Athens made the offer on Monday on more attractive terms than expected for investors, boosting expectations that enough bondholders will take part to ensure the deal is a success...
IF IT LOOKS LIKE A BAILOUT, AND SOUNDS LIKE A BAILOUT, AND A BANK IS INVOLVED...
Greece's biggest banks asked their boards to approve selling back as much as their entire holdings of national debt, banking sources said on Friday, putting Athens on track to meet a target set by its international lenders. The buyback scheme, in which investors must declare their interest by Friday, is central to efforts by Greece's euro zone and International Monetary Fund lenders to cut its debt to manageable levels by 2020.
Athens has pressured its banks, which hold an estimated 17 billion euros ($22 billion) of bonds out of the 63 billion eligible for the buyback, to sell and promised to shield them from any lawsuits by shareholders over losses from the scheme...The country's four biggest banks have each asked their boards to approve up to 100 percent participation in the deal ahead of the 1700 GMT deadline, two banking sources said.
"The proposals by banks to their boards were positive on the buyback offer, asking for approval to participate by up to 100 percent," said one banker, who declined to be named.
Board approval does not necessarily mean the banks will offer all of the Greek bonds they hold.... Under the scheme, Athens aims to spend 10 billion euros of borrowed money to buy back bonds far below their nominal value, in a bid to cut debt by a net 20 billion euros. Athens made the offer on Monday on more attractive terms than expected for investors, boosting expectations that enough bondholders will take part to ensure the deal is a success...
IF IT LOOKS LIKE A BAILOUT, AND SOUNDS LIKE A BAILOUT, AND A BANK IS INVOLVED...
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