ATHENS (MNI) – Greece’s Finance Minister Evangelos Venizelos said
that he will propose today to his Eurozone colleagues the activation of
collective action clauses (CACs) on Greek sovereign bonds in order to
successfully conclude the private sector debt exchange deal (PSI) with
maximum creditor participation.

Speaking at a press conference in Athens before a teleconference of
the Eurogroup, Venizelos said that both the Eurozone finance ministers
and the Greek cabinet will decide today whether to activate the CACs.

Venizelos announced early this morning that bond holders with 83.5%
of Greece’s E206 billion in privately-held Greek debt had agreed
voluntarily to participate in the PSI deal. With activation of the CACs,
participation would rise to 95.7%.

The results of the PSI have been enthusiastically embraced across
Europe this morning. Germany’s Finance Ministry said it would have no
objection to activating the CACs.

“This is a historic day for Greece, as an important burden has been
lifted,” Venizelos said, adding that with successful completion of the
PSI deal, “the target of a 120% debt by 2020 is achievable.”

He predicted that with the extension of the participation deadline
to March 23 for bonds under the foreign law, as well as for certain
protected bonds under the Greek law, the holders would respond
favorably. interest.
“This way we can achieve our goal of 100%,” the finance minister
asserted.

Asked to send a message to other Eurozone countries suffering from
severe fiscal problems, Venizelos repeated the line that the PSI deal,
as decided by the EU, was a unique case specifically for Greece, which
faces particular structural problems.

He added that the financial markets “didn’t do us any favours” by
accepting PSI, since the deal was “an attractive offer for the bond
holders.” The PSI success is a vote of confidence in the Greek economy,
he argued.

Venizelos vowed that the Eurozone countries providing yet another
rescue package for Greece “will not lose their money.”

In addition to discussing the CACs, the Eurogroup will also discuss
whether Greece has met other conditions — including implementation of a
series of austerity measures — that would allow the second bailout plan
to proceed.

Then on Monday, the Eurozone finance ministers will meet physically
in Brussels to discuss the second loan for Greece again, particularly
“whether the indebted country has implemented all the necessary prior
actions,” Venizelos said.

If the policy commitments are met by Athens, the finance ministers
are expected to give the green light for the new bailout plan, which is
estimated at E130 billion. That includes E30 billion of “sweeteners” in
the PSI deal, primarily in the form of short-term bonds issued by the
European Financial Stability Facility to pay creditors off on 15% of
their outstanding bonds.

An emergency EU summit on Greece is expected late next week.

–Athens bureau, a_papamiltiadou@hotmail.com

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