Have we not figured out that no matter how involuntary the PSI may appear , the PTBs will always declare it's voluntary ?

http://www.athensnews.gr/portal/11/52344

Adding bond-loss clause not seen triggering insurance

16 Jan 2012

(File photo) Introducing clauses to force losses on holders of Greek bonds by making a debt restructuring agreed by a majority binding for all holders would not in itself trigger a payout of insurance against default, senior eurozone officials said on Monday.   Activating the clauses, however, may well trigger such payouts by being designated a so-called credit event.   One senior official with knowledge of the talks between Greece and private bondholders on a restructuring needed to pave the way for a second international financing package for Athens said retroactively introducing such clauses meant a deal could be done with the consent of just a majority of bondholders.   "Our legal advice says that doing that would not trigger such a credit event," the official said.  Some hedge funds hope that introducing CACs would trigger a credit event, meaning they would get paid in full for their Greek bonds from the credit default swap contracts (CDSs) they bought to insure against a Greek default.   If not from CDSs, the hedge funds hope that by staying out of a restructuring deal, which envisages a 50 percent reduction of Greek debt held privately, they would get paid in full on Greek bonds maturing in March from the second bailout granted to Athens by eurozone governments.   The sum of individual net exposures to Greek sovereign CDS - the maximum amount of money that could change hands after a credit event, is relatively small at 2.64bn euros, according to data from the Depository Trust & Clearing Corporation.   In the event of a 50 percent write down a total of 1.32bn euros would be paid out, with much of this exposure already believed to be collateralized.   The official said that despite the relatively small amounts of money involved, the eurozone was still reluctant to see default insurance paid out on Greece.   "The outstanding amount of CDSs for Greece is indeed relatively small but it is also a market that is extremely in transparent," the official said.   He said the main concern in the European Union was to avoid any credit event spreading elsewhere in the eurozone.(Reuters) The official added that introducing so-called collective action clauses (CACs) would help win support for a Greek debt restructuring from hedge funds, which are currently holding out in the hope of making bigger profits.   Under International Swaps and Derivatives Association definitions, the mere inclusion of a CAC would not trigger a credit event, forcing insurance payments, but the use of it could because its effect would be to bind all holders of the relevant debt.   Any final decision on whether a credit event has occurred rests with the ISDA determinations committee. For more on how ISDA decides if a credit event has taken place, see: and..... http://www.athensnews.gr/portal/1/52312     More good news , the bandits coming back to visit ! Debt inspection restarts, troikas chiefs due Friday 16 Jan 2012 Officials from the Troika EC-ECB-IMF are due in Athens on Friday (File photo) EU-IMF rescue creditors are due to restart inspections in Greece on Tuesday, with the heads of the troika mission due in Athens on Friday.   "It is clear there will be renewed pressure to speed up structural reforms. But this government has already completed a substantial body of work," government spokesman Pantelis Kapsis said.   He said "lower-level" inspectors from the International Monetary Fund, European Central Bank and European Commission would begin meetings with officials on Tuesday. The Finance Minister later said the heads of the troika delegation would be in Athens on Friday.   In a report last month, the inspectors said that delays in making long-term reforms, including the civil service, have hurt efforts to end the country's recession, with reliance on taxes no longer delivering substantial deficit cuts.   The inspectors return amid stalled talks to cut €100 billion off the national debt in a bond-swap deal with banks and other private bond holders. The talks, reportedly stalled over disagreement on the interest rate, are due to resume on Wednesday. Kapsis insisted Prime Minister Lucas Papademos two-month-old coalition government was on track to complete the deal and the second, massive bailout with the European Union.   "Despite the difficulties, the government remains optimistic over the outcome...The economy is at a critical stage and these negotiations are very difficult," he said. "The prime minister has put aside all other activities for the coming days and weeks. This is the main task of this government." (GW)     and..... http://www.blogger.com/post-create.g?blogID=2949151804634268229  Greeks prepare an appropriate welcome ! Strike to cause transport disruption on Tuesday  A 24-hour strike over wages and labor rights organized by the Athens Labor Center (EKA) and the Confederation of Greek Labor (GSEE) will lead to transport disruption in the capital on Tuesday. There will be no metro while other services will be restricted. The Piraeus-Kifissia electric railway (ISAP) will only run between 9 a.m. and 9 p.m., buses will operate between 7.30 a.m. to 10 p.m. trolley buses from 7 a.m. to 10 p.m. and the tram from 9 a.m. to 10 p.m. The Proastiakos suburban railway will also run a restricted service. Two protest rallies are planned for central Athens at 11 a.m. -- one at Klafthmonos Square and the other at Omonia Square. Ferry services are also likely to be disrupted as seamen’s unions have said they will walk off the job. Hospital doctors, lawyers and journalists who today launch a 48-hour strike.