• Germany edition
 
German investors 'could sue Greece'
Photo: DPA

German investors 'could sue Greece'

Published: 10 Mar 2012 09:07 GMT+01:00
Updated: 10 Mar 2012 09:07 GMT+01:00

The swap, which was taken up by 83.5 percent of Greece's private creditors on Friday, was needed for the release of a €130 billion, second aid package from eurozone partners for Athens to help it avert a default.

"The Greek debt exchange offer is interesting on a financial level, even for small debt holders," an SdK statement released late Friday acknowledged. "But its technical application is totally unacceptable for small investors," it added.

"The Greek government's project ... to force Greek bond holders to take

part in this partial default via collective action clauses violates fundamental legal principles," the statement said.

SdK head: fatal signal to investors

It quoted SdK director Daniel Bauer as criticising a "fatal signal to all investors" that would make "Europe a banana republic."

SdK said it was studying legal means at its disposition, and foresaw a "judicial process that lasts several years and certainly ends before the European Court of Justice."

Greece has triggered collective action clauses to force holdouts to accept bond swap aimed at erasing more than €100 billion ($132 billion) in debt and unlock a new bailout, a government source said Friday.

The decision was taken after Greece agreed with its eurozone partners that the move was the best way to ensure maximum participation in the deal.

Private creditors are to take losses of more than 50 percent on their holdings of Greek sovereign debt under the swap.

AFP/jlb

The Local (news@thelocal.de)

Your comments about this article

16:18 March 10, 2012 by derExDeutsche
Investors and Taxpayers will pay for the debt created by deceptive EU credit ratings, with which Germany will take ownership of Greece. You pay the lease, Fatherland gets the Condo in Athens. Investors won't see a penny, in fact, the bill is still just growing.
22:08 March 10, 2012 by Deutschguy
Oh, please!

These bondholders will get a portion of their money, just like any creditor in any bankruptcy, but over a longer period of time.

Maybe these bondholders should have done their due diligence before making an investment. However, I suspect many of these of johnny-come-lateleys, who saw the write-down as inevitable and bought them then.

Nevertheless, these creditors don't deserve any more than others who bought bonds.
13:36 March 17, 2012 by kewlo
Many of these bondholders are older people who will not live to see even part of their savings reimbursed by the defaulted Greek government. Many bought Greek bonds at a time when a national default was considered impossible in the Eurozone.

And in many cases, Greece has treaties with other countries (including Germany) that specifically exclude losses by private persons investing in Greek bonds. Such treaties have been ignored by Greece and Germany, and now must be brought into memory by legal suits. Some politicians can only be convinced to do the right thing by force.

Who negotiated with small-time private investors? Nobody. They were simply kicked out. And who is now supposed to but Portuguese, Irish, Spanish, Italian bonds? What fools would do that?
Today's headlines
Berlin slams Italy Nazi claims court ruling
Italy's National Partisans' Association welcomed the court decision. Photo: DPA

Berlin slams Italy Nazi claims court ruling

Italy's constitutional court has ruled that victims of Nazi-era war crimes can sue Germany in Italian courts, rejecting a UN ruling and provoking a strong reaction from Berlin on Friday. READ  

Expats reveal another side of Berlin Wall
Photo: Paul Sullivan

Expats reveal another side of Berlin Wall

Two expats who walked the Mauerweg - the 160-kilometre trail that runs the length of the former Berlin Wall - have written a book about forgotten aspects of its past and present. READ  

Karstadt closes six stores to stay afloat
Photo: DPA

Karstadt closes six stores to stay afloat

Germany's biggest department store chain Karstadt will close at least six stores, putting around 2,000 jobs at risk, in a drastic bid by its new boss to return it to profit. READ  

Quiz
How well do you know Germany?
Photos: DPA/Shutterstock

How well do you know Germany?

Do you know your Saxony facts from your Saxony-Anhalt ones? Test your knowledge of Germany's federal states in The Local's quiz. READ  

Climate chief hails Bonn greenhouse gas deal
Pollution from a coal-fired power station in Frimmersdorf, North Rhine-Westphalia. Photo: DPA

Climate chief hails Bonn greenhouse gas deal

The UN's climate chief hailed a European agreement in Bonn on greenhouse gases on Friday as providing "valuable momentum" for a world pact to be inked in Paris next year. READ  

Germany gets €780m EU rebate for poor growth
Photo: DPA

Germany gets €780m EU rebate for poor growth

Germany will get an early Christmas present of around €779 million from the EU, thanks to weaker than expected GDP growth. READ  

Stay inside after blast, Ludwigshafen told
Photo: DPA

Stay inside after blast, Ludwigshafen told

It will take several days to find out what caused a massive explosion on Thursday which rocked a town on the Rhine, killing a builder and injuring 26 others. READ  

German helicopter fleet 'not fit for Nato'
An NH90 helicopter. Photo: DPA

German helicopter fleet 'not fit for Nato'

Germany's fleet of NH90 helicopters is undergoing engineering checks after one of them suffered a serious engine failure, in the latest blow to the country's military capabilities. READ  

Ex-boss of Berlin Airport farce gets €1.2m
Rainer Schwarz at a court hearing in September into the case. Photo: DPA

Ex-boss of Berlin Airport farce gets €1.2m

The man who was blamed for Berlin's miserable attempt to build a new airport must be paid more than €1 million - after being fired. READ  

Steinmeier challenges UN over Isis gas reports
Foreign Minister Frank-Walter Steinmeier and Kurds watching the attack on Kobane. Photo: DPA

Steinmeier challenges UN over Isis gas reports

Foreign Minister Frank-Walter Steinmeier pressed UN General Secretary Ban Ki-Moon to bring possible poison gas use by Isis in Iraq before the Security Council. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Politics
Satirist lives the dream on EU gravy train
Photo: DPA
Gallery
PHOTOS: Huge explosion rocks Ludwigshafen
Photo: DPA/Shutterstock
Gallery
Which high school cliche is your German city?
Photo: DPA
Gallery
Storm hits southern Germany
Sponsored Article
An international school unlike any other : School on the Rhine
Photo: Fitzpatrick family
Society
'We still don't know what happened to Matthew'
Photo: Mariana Schroeder
Munich
Special Report: Hope and chaos at Munich's refugee shelters
Photo: DPA
Culture
Can you top our history quiz leaderboard?
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,532
jobs available
Toytown Germany
Germany's English-speaking crowd