Stournaras: The successful repurchase of bonds is a patriotic duty

"Now comes the difficult part," the Greek Finance minister said at a press conference after the Eurogroup agreement.

However, the participation of banks and insurance funds in the bond repurchase program will ultimately be voluntary because, as Stournaras said, "those who want to take part are free to do so but the successful repurchase of bonds is a patriotic duty for all."

Stournaras clarified that there is no need for additional support for Greek banks participating in the bond repurchase program, since valuations in their balance sheets have been made at already low actual rates formed in the secondary securities market and not at face value.

According to the minister and the PDMA heads, at the beginning of next week they will announce the proposed acquisition of bonds that will remain open for approximately one week. The Greek government will allocate about 10 billion euros to buy bonds at a nominal value of almost 30 billion. 10 billion euros will come from new EFSF loans, beyond the 44 billion in the tranche, which will be given to Greece.

Stournaras declined to comment on the reactions of banks and fund administrations which want to avoid the consequences of any losses from their participation in the program. He also did not specify, if they ultimately do participate, whether that will be enough to cover the target set by IMF and the Eurogroup in order for the project to be judged as successful.

He added that a successful repurchase program "is a question of credibility for our country, while the national parliaments of other countries will decide the costs that will be borne by each member state of the Eurozone."

The Finance minister admitted that there is a plan B, just in case the Greek government does not ensure the necessary response from the Greek and foreign holders of Greek bonds.