Saturday, May 12, 2012


...for vulture and distressed debt investors...I believe these are governed by U.K. law and holders of all bond holders are likely reviewing their exposures should a non-payment set the precedent.

ATHENS, May 11 (Reuters) - Greece's finance minister said on Friday he had asked the prime minister to decide whether the country will pay a remaining amount of 430 million euros ($557 million) of a bond maturing on May 15, which was not part of a major bond swap.

Greece completed a huge debt restructuring in early March, swapping a nominal amount of 177 billion euros of government paper held by private creditors for new securities as part of its second rescue package.

A few investors held out, rejecting the bond swap offer accepted by 96.9 percent of bondholders who suffered a real loss of 75 percent, leaving about 6 billion worth of bonds that Greece must decide how to treat.

Political deadlock after Sunday's national election is delaying a decision on how Athens will deal with a bond expiring May 15, which is governed by foreign law.

"I have not taken a position on whether the bond should or should not be paid," Filippos Sachinidis told Reuters.

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