Pension funds reacting to the "haircut"

For three hours, Evangelos Venizelos and George Koutroumanis were overseeing a wide meeting with all the presidents of the Insurance Funds, about the participation of their reserves  in the PSI+.

The meeting was decided upon since the majority of administrations of Insurance Funds are reacting to the prospect of cuts in reserves which are reduced by 53.5%, equal to the amount of the nominal bonds value, while intense reactions have also arisen concerning the fact that the deposits they held in the Bank of Greece were turned into bonds.

In some cases, the Funds presidents report that they were never asked about their refusal to participate in the Exchange Program which, however, will become mandatory through the CAC activation.

Note that the assets of pension funds which have been invested  in the Greek government securities exceed 22  to 23 billion. The rest of the 7.7bn are managed by the funds themselves.

OGA and the Public Employees Pension Fund already voted in favor of the haircut, while ETAP-MME and ETEAA are objecting. ADEDY, which participates on the boards of 3-4 Funds, has stated that it will downvote the haircut.

The fact that the road to complete the PSI is not paved with thorns is one of the reasons of today’s decline in the ASE.

Note that earlier, the IIF clarified that twelve foreign banks announced their participation in the process.