• Germany's news in English
 
app_header_v3

German investors 'could sue Greece'

The Local · 10 Mar 2012, 09:07

Published: 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.

Story continues below…

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
Ansbach suicide attack
Isis says Syrian bomber in Bavaria one of its 'soldiers'
Photo: DPA

The Syrian asylum seeker who blew himself up outside a music festival in Germany was a "soldier" of the Isis, the jihadist-linked Amaq news agency said on Monday.

Merkel's refugee policy was 'reckless': Left Party leader
Photo: DPA

The attacks carried out by refugees over the past week show accepting large numbers of refugees brings "significant problems", the party's chairwoman said on Monday.

Ansbach suicide attack
What we know about the Ansbach suicide bomber
The attacker's rucksack. Photo: DPA

He had had his asylum application rejected and had twice attempted suicide, say authorities.

Ansbach suicide attack
Ansbach suicide bomber confirms Isis loyalty in video
Police remove evidence from the bombers residence. Photo: DPA

The man who blew himself up in Ansbach, Bavaria, on Sunday evening, injuring 15 people, recorded a video in which he pledged his allegiance to terror group Isis.

Top 10 German firms with the highest-paid employees
Photo: DPA

Want to know which companies shell out the most for salaries?

How will Germany change after string of bloody attacks?
A policeman in Ansbach on Sunday evening. Photo: DPA

Within seven days Germany has been hit by four bloody attacks on innocent people on its streets and in a train. What does this unprecedented string of murders mean for the country?

After attacks, minister rejects blanket suspicion of refugees
Thomas de Maiziere. Photo: DPA

Interior Minister Thomas de Maiziere on Monday cautioned Germans against indiscriminately branding all refugees a security threat after a rash of attacks over the last week.

What we know about the Reutlingen knife attack
Police arrest the attacker. Photo: DPA

... and what we don't.

Munich shooting
Police arrest possible accomplice of Munich gunman
Mourners in Munich. Photo: DPA

Authorities in Munich believe that a friend of the teenager who murdered nine people at a Munich shopping centre may have known about his plans.

Ansbach suicide attack
Suicide bomber attacks bar in Bavaria
Photo: DPA

A Syrian migrant set off an explosion at a bar in southern Germany that killed himself and wounded a dozen others late Sunday, authorities said, the third attack to hit Bavaria in a week.

Sponsored Article
Why you should attend an international job fair
DPA
Gallery
IN PICTURES: How Munich responded to shooting spree
Sponsored Article
Avoid hidden fees when sending money overseas
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
National
Bavaria train attack: Were police right to shoot to kill?
Sponsored Article
Why Swiss hospitality graduates are in demand
National
How to get German citizenship (or just stay forever)
Sponsored Article
Five things Americans should know about voting abroad
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Sponsored Article
Why expats choose international health insurance
Travel
These 10 little-known German towns are a must see
Features
How two gay dads cut through German red tape to start a family
Sponsored Article
Health insurance for expats in Germany: a quick guide
National
Five things to know about guns in Germany
Sponsored Article
Avoid hidden fees when sending money overseas
Culture
10 things you need to know before attending a German wedding
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Sponsored Article
Why Swiss hospitality graduates are in demand
Society
Only one country likes getting naked on the beach more than Germany
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Sponsored Article
Why you should attend an international job fair
Culture
8 German words that perfectly sum up your 20s
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
10,692
jobs available
Toytown Germany
Germany's English-speaking crowd