Business

Greece to pass law enforcing losses on bondholders

by fm

21st February 2012

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1 min read

Greece said on Tuesday it would pass legislation that would allow it to enforce losses on bondholders who will not take part in a voluntary bond swap plan, also known as PSI, that forms part of its bailout plan.

"The Greek government will shortly submit to the Greek parliament a draft bill which, if passed, will introduce a collective action clause into eligible Greek-law governed bonds of the Hellenic Republic as determined by the Council of Ministers of the Hellenic Republic," the finance ministry said in a statement.

"If passed, this law will be available to be used in the implementation of the PSI (private sector involvement) transaction if necessary to achieve participation at the levels anticipated by the 26 October 2011 Euro Summit Statement," it added.