• 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
German Muslims rally against extremism
Muslims pray in Kreuzberg, Berlin, on Friday outside a mosque which was damaged in an arson attack. Photo: DPA

German Muslims rally against extremism

Muslims across Germany held a day of prayers and rallies on Friday to condemn both Islamic extremism and a backlash against their faith that has seen arson attacks on mosques. READ  

German military flight to Iraq starts with a hiccup
The trainers on the air strip in Hohn, Schleswig-Holstein. Photo: Bundeswehr.

German military flight to Iraq starts with a hiccup

Military trainers flew to northern Iraq from Germany on Friday, ahead of a huge delivery of weapons from the German military, but things didn’t initially go as planned. READ  

Munich gets four Euro 2020 matches
Photo: DPA

Munich gets four Euro 2020 matches

UPDATE: Munich will play host to four Euro 2020 games, European football’s governing body Uefa announced in Geneva on Friday, but London was the real winner. READ  

Driver, 18, ploughs into school pupils
The scene by the bus stop outside the school in Diepholz. Photo: DPA

Driver, 18, ploughs into school pupils

An 18-year-old drove into a group of students outside a school in western Germany on Friday morning, injuring several. READ  

View from Germany
'In a globalized world we don't need more loners'
'No' campaign supporters celebrate in Edinburgh after the results were announced. Photo: DPA

'In a globalized world we don't need more loners'

UPDATE: The German government welcomed the result of the Scottish independence referendum on Friday, with Foreign Minister Frank-Walter Steinmeier calling it the "right decision". READ  

Oktoberfest 2014
Your guide to Munich Oktoberfest's beer
Photo: DPA

Your guide to Munich Oktoberfest's beer

The Local's Oktoberfest guide chugs some of the Bavarian tipple fueling this whole shindig. READ  

Berlin squat ripped apart by fire
Kreuzberg's Cuvrybrache. Photo: DPA

Berlin squat ripped apart by fire

UPDATE: One of Berlin’s biggest squats was torn apart by a fire on Thursday night following an argument. READ  

Sterilized woman gets pregnant, sues doctors
Photo: DPA

Sterilized woman gets pregnant, sues doctors

A woman who gave birth after becoming sterilized has tried and failed to sue the hospital which carried out the operation. READ  

Thousands queue for Apple's iPhone 6
Queues outside the Apple Store in Dresden. Photo: DPA

Thousands queue for Apple's iPhone 6

UPDATE: Apple’s new iPhone 6 went on sale on Friday morning, leading to long queues outside stores across Germany. Berlin's Apple Store sold out of the iPhone 6 Plus in an hour. READ  

Blitzmarathon
Pupils catch teacher and mum speeding
A camouflaged speed camera in Schleswig-Holstein on Thursday. Photo: DPA

Pupils catch teacher and mum speeding

UPDATE: A nationwide operation against speeding drivers ended on Friday morning, with police hailing their "Blitzmarathon" as a success. One child in Düsseldorf caught his own mother driving too fast, while another driver hit 238 km/h. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Culture
Your guide to Munich Oktoberfest's tents
Photo: DPA
Hamburg
Drunk teachers ruin school trip to Hamburg
Marks & Spencer
Sponsored Article
Fashion Ladies of the Local: Win a New Autumn Look
Photo: DPA
Gallery
Oktoberfest 2014: The best and worst in dirndl fashion
Photo: Shutterstock
Gallery
Ten German words you'll never want to hear again
Photo: DPA
Education
German universities tumble in global rankings
Photo: Shutterstock
Business & Money
The three types of firms hiring foreigners
Photo: DPA
Berlin
Frisky couple shock Berlin commuters
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
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

3,371
jobs available
Toytown Germany
Germany's English-speaking crowd