IF:Greece Financing Offer Wld Provide 54 bln 2011-2014 -Text
1) A Par Bond Exchange into a 30 year instrument
2) A Par Bond offer involving rolling-over maturing Greek government bonds into 30 year instruments
3) A Discount Bond Exchange into a 30 year instrument
4) A Discount Bond Exchange into a 15 year instrument For instruments, 1, 2 and 3 the principal is fully collateralized by 30 year zero coupon AAA Bonds. For instrument 4, the principal is partially collateralized through funds held in an escrow account. All of the debt servicing risk on these new instruments, however, remains full Greek risk.
Dr. Ackermann stated, "This offer is part of a comprehensive package which involves a balance of interest for all parties. Greece will benefit from the improved EU terms, the support of the IMF, and the substantial financing and debt reduction coming from the private sector. The EU will benefit from the voluntary support by the private investor community and the very real prospect of drawing a line under this exceptional support for Greece. The private investor community will benefit from a more stable financial and economic environment."