FRANKFURT (MNI) – Greece on Monday launched its much anticipated
debt buy-back scheme aimed at improving the country’s debt profile.
Eurozone finance ministers are expected to discuss the details of the
program at their meeting Monday evening in Brussels.

The following is the announcement by the Hellenic Ministry of
Finance inviting eligible bond holders to participate:

Athens, Greece: The Hellenic Republic announced today an invitation
(the “Invitation”) to eligible holders of the bonds set forth in the
table in Annex I (the “Designated Securities”) to submit, in a separate
modified Dutch auction for each series of Designated Securities, offers
to exchange such Designated Securities (together with accrued and unpaid
interest theron) for up to E10 billion aggregate principal amount of
six-month notes to be issued by the European Financial Stability
Facility (the “EFSF” and the “EFSF Notes”). The Invitation is subject to
certain conditions summarized below, including the delivery of the EFSF
Notes to the Republic by the EFSF. The Invitation is designed to improve
the Republic’s debt profile in the furtherance of the 27 November 2012
Eurogroup Statement.

Based on the modified Dutch auction procedure, the Republic will
determine, in its sole discretion (a) the aggregate principal amount of
each series of Designated Securities (if any) that it will accept for
exchange pursuant to the Invitation, (b) the purchase price in respect
of each series of Designated Securities (expressed as a percentage to be
applied to the principal amount of the relevant Designated Securities),
subject to the applicable minimum purchase price and maximum purchase
price for each series of Designated Securities set forth in Annex I, and
(c) the aggregate principal amount of EFSF Notes the Republic intends to
deliver in exchange for Designated Securities of any such series
accepted for exchange.

Subject to proration, eligible holders that validly offer
Designated Securities for exchange, if the offers are accepted by the
Republic, are expected to receive, for each E1,000 principal amount of
Designated Securities of a series so offered and accepted, (i) EFSF
Notes having a principal amount equal to E1,000 multiplied by the
purchase price (expressed as a percentage to be applied to a principal
amount of the relevant Designated Securities) selected by the Republic
for that series of Designated Securities under the modified Dutch
auction, and (ii) EFSF Notes having a principal amount equal to the
amount of the unpaid accrued interest to but excluding the expected
settlement date on that series of Designated Securities, in each case
subject to rounding. The Republic will not accept offers of Designated
Securities for exchange such that the aggregate principal amount of EFSF
Notes that it would be required to deliver at settlement, including in
discharge of accrued interest, could exceed up to E10 billion. The
expected terms of the EFSF Notes are summarized in Annex II.

The Republic will allocate the aggregate principal amount of
Designated Securities of each series it elects to accept in its sole
discretion, and reserves the right to accept significantly more or less
(or none) of the Designated Securities of any series as compared to the
other series.

The Republic reserves the right, in its sole discretion, not to
accept any or all offers for exchange or to terminate the Invitation
with respect to Designated Securities of any and all series in its sole
discretion. The Republic also reserves the right to prorate one of more
series of Designated Securities that it elects to accept on the basis of
different proration factors. Each offer to exchange any Designated
Securities of a series made by a holder will be considered a separate,
independent offer.

The Invitation will be subject to certain conditions, including a
financing condition and other customary conditions. Under the financing
condition, the Republic will not proceed with any part of the
transaction contemplated in the Invitation unless it meets all of the
conditions under a financing agreement entered into with the EFSF for
the Republic to be entitled to receive the EFSF Notes.

The Invitation is expected to expire at 5:00 p.m., London time, on
7 December 2012. The results of the Invitation will be announced as soon
as reasonably practicable under the expiration deadline. The expected
settlement date of the invitation is 17 December 2012.

The full terms of the Invitation will be made available in
electronic form only, in an invitation memorandum available, subject to
certain restrictions, by email from the Information and Exchange Agent
at the contact details below. To be able to participate in the
Invitation, holders must comply with the procedures and offer and
distribution restrictions described in the invitation memorandum.

Deutsche Bank AG, London Branch has been appointed to act as Lead
Structuring Agent, and, along with Morgan Stanley & Co. International
plc, as Joint Dealer Managers. Lucid Issuer Services Limited has been
appointed to act as Information and Exchange Agent.

— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com

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