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Greece Sent An Inquiry For The Implementation Of PSI

Greece said it has approached Ministers of Finance in various jurisdictions to request their assistance in implementation of a voluntary liability management transaction to support the sustainability of Greek public debt outlined in a financing proposal submitted on 21 July 2011 by representatives of Greece’s private sector creditors.

According to an announcement, Greece seeks to obtain an indication of the expectations of institutional holders of eligible GGBs regarding their eventual participation in such a transaction. The main commercial terms of these Options and a list of all GGBs that Greece may elect to include in the eventual liability management transaction are set out below.

The inquiry referred to above includes the following statement:

“Greece shall not be obliged to proceed with any portion of the transaction described in this letter unless holders of eligible GGBs tender, in response to Greece’s eventual Invitation to Tender, eligible GGBs having a principal amount equal to not less than 90% of all eligible GGBs, including 90% of that portion of the eligible GGBs maturing during the period from June 30, 2011 through August 31, 2014. If these thresholds (or either of them) are not met, Greece shall not proceed with any portion of the transaction described in this letter if it determines, in consultation with the official sector, that the total contribution of private sector creditors towards the financing needs of Greece and Greece’s debt sustainability resulting from this transaction is insufficient to permit the official sector to support the new multi-year adjustment program for Greece announced on July 21, 2011.”

*The full inquiry is attached.
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