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PRESS RELEASE FOR IMMEDIATE RELEASE
6 March 2012
Athens, Greece: On 5 March 2012, the Director General of the Public Debt
Management Agency of the Hellenic Republic attended a meeting convened by
members of the German banking industry in Frankfurt, Germany and addressed
questions relating to its invitations to private sector holders of bonds issued or
guaranteed by the Republic announced on 24 February 2012. The invitations were
made in furtherance of the 26 October 2011 Euro Summit Statement and the 22
February 2012 Eurogroup Statement (referred to as the Private Sector Involvement (or
PSI)).
The Republic confirmed that if it receives sufficient consents to the proposed
amendments of the Greek law governed bonds identified in the invitations for the
amendments to become effective, it intends, in consultation with its official sector
creditors, to declare the proposed amendments effective and binding on all holders of
these bonds. Consequently, all obligations of the Republic to pay holders of those
bonds any amount on account of principal will be amended to permit the Republic to
discharge these obligations in full by delivering to the holders of the amended bonds
on the settlement date the consideration described in the invitations. In addition, the
Republic’s obligation to pay interest on its Greek law governed bonds will be
amended so as to reduce the amounts due to interest accrued through 24 February
2012 and to provide that such amounts will be paid by delivering short-term EFSF
notes in lieu of cash. No further interest will accrue or be payable on those bonds.
The Republic’s representative explained that the Republic has fixed a delayed
settlement date (11 April 2012) for the invitations made to foreign law governed
Republic bonds and guaranteed bonds to comply with the notice provisions of those
bonds and allow the holders to vote on the relevant proposed amendments prior to the
delayed settlement date. Whether or not the proposed amendments to the foreign law
governed bonds and guaranteed bonds are approved by the requisite majorities, the
Republic intends to accept tenders of these bonds for exchange (assuming the
conditions described in the invitations have been satisfied or waived).
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The Republic’s representative noted that Greece’s economic programme does
not contemplate the availability of funds to make payments to private sector creditors
that decline to participate in PSI. Finally, the Republic’s representative noted that if PSI
is not successfully completed, the official sector will not finance Greece’s economic
programme and Greece will need to restructure its debt (including guaranteed bonds
governed by Greek law) on different terms that will not include co-financing, the delivery
of EFSF notes, GDP-linked securities or the submission to English law.
The expiration deadline for the invitations is 9.00 pm CET on 8 March 2012,
subject to the Republic’s right to extend, re-open, amend or terminate the invitations as
provided therein.