Friday, 9 March 2012

Greek sovereign CDS: the end is nigh

The Greek Ministry of Finance announces:
Of the approximately €177 billion of bonds issued by the Republic and governed by Greek law and subject to the invitation, the Republic has received tenders for exchange and consents from holders of approximately €152 billion face amount of bonds, representing 85.8% of the outstanding face amount of these bonds.  Holders of 5.3% of the outstanding face amount of these bonds participated in the consent solicitation and opposed the proposed amendments.  The Republic has advised its official sector creditors that upon confirmation and certification by the Bank of Greece as process manager under the Greek Bondholder Act (Law 4050/2012), it intends to accept the consents received and amend the terms of all of its Greek law governed bonds, including those not tender for exchange pursuant to the invitations, in accordance with the terms of the Greek Bondholder Act...
If ISDA acts according to its previous statement, quoted here, the intended amendment of terms will cause it to declare Greek Sovereign CDS to have been triggered.

Update: ISDA has announced that "its EMEA Credit Derivatives Determinations Committee resolved unanimously that a Restructuring Credit Event has occurred with respect to The Hellenic Republic (Greece)."

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