PSI agreed upon, initially

The PSI finalized its agreement with Greece and the Troika achieved very low interest rates in negotiating with the holders of old Greek bonds. According to information, a teleconference is taking place at this time, during which the last details and announcements planned for later in the day are being worked out. In the conference call, all bank-members of the IIF are being represented.

According to the same sources, the interest rate of new bonds is gradually escalating, while a clause of increase when the country presents growth  is also present. The initial interest rate is going to be at 3.10% which will gradually increase to 3.90% and reach 4.75%. The entire Greek debt is substituted by a bond of 30 years of maturity. Greece will be paying interest only for the first few years and then will continue to pay both interest and principal so that the debt can be paid out in the end.

Banks, institutional investors etc. will get 50% of the bond’s value, of which 15% will be cash and 35% will be the new bond. At the same time, accounting and tax incentives are provided to limit the damage that would have been caused to the net value of bonds.

The final terms and the procedure to be followed by the Greek Republic on the exchange of Greek bonds is expected to be announced on Friday evening by IIF head Charles Dallara. Speaking to Bloomberg earlier, Mr. Dallara stated: “It is possible that we will have statements to make later today”.

Top government officials stated exclusively to protothema.gr that negotiations are completed, but the standard of all major lenders of Greece’s agreement is still outstanding. These lenders hold bonds worth close to 150 billion euros (50bn are held by hedge funds who even now are trying to torpedo the agreement).

Meanwhile, an upward trend in the ASE continues for the third consecutive day, with profits of 2.5%, exceeding 705 index points.