All bonds of banks will be included in the haircut

All bonds of banks will eventually be included in the haircut. This was the result of Venizelos’ meeting with the heads of the 6 major banks of the country.

The bank managers that attended the meeting decided to recommend to tomorrow’s board meeting the participation of all titles in the haircut, including those issued for public transport SOEs.

The problem had arisen with the exclusion from the haircut of the bonds given to enterprises such as OSE, EAS and OASA, the value of which reaches 8 billion euros. During the meeting the objections brought by the banks were overcome, thus creating the conditions for greater participation in the haircut.

Earlier, information spoke about a participation rate of 75% to 80% already, and if there is no dramatic increase in the rate during the process, it should lead to the activation of CACs aiming at a 90% participation with the mandatory inclusion of unwilling bond holders.

Earlier today, Finance commissioner Olli Rehn and governor of the Bank of Greece George Provopoulos expressed their optimism about the outcome of the project.

IIF head Charles Dalara warned the markets that the cost of default in the Greek economy would reach one trillion euros.