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Thursday, 22 March 2012

Greece To Pay at least €35.5 Million to PSI Advisers

Greece To Pay at least €35.5 Million to PSI AdvisersPosted by keeptalkinggreece
 OUCH! Greece has to pay at least 35.5 million euro to its two main advisers helping the debt-ridden country with its Greek Bond swap (PSI) or in common English “debt restructuring”. Greek Finance Ministry saw itself obliged to reveal the payments, after daily Proto Thema  claimed on Tuesday, that Athens had paid a total of 74 million euro. Proto Thema was referring to previous statements of Finance Minister Philippos Sachinidis, when he was still alternate FinMin. Sachinidis had told the Greek parliament in February that Lazard and Hamiltonhad to pe paid 1.5 million euro additionally for every month that the PSI was delayed. The Greek bond swap was supposed to complete in October 2011, but it concluded in March 2012, wrote the newspaper. The Institute of International Finance (IIF)  also receives 3.4 million euro for its legal advises.

 Greece unveiled details of payments to its two main debt restructuring advisers late on Wednesday to knock down a local website report that they had received 74 million euros (61.7 million pounds).
Greece averted the immediate threat of an uncontrolled default earlier this month after a large majority of private creditors agreed to a bond swap deal that cut its public debt by about 100 billion euros.
Holders of bonds with a face value of 197 billion euros either accepted voluntarily or were forced to take part in the deal. Up to 9 billion euros of additional bonds could sign up to the deal when a second deadline expires on Friday.
The finance ministry said Lazard Freres is being paid 0.015 percent of the face amount of the bonds swapped, with its compensation capped at 25 million euros.
Law firm Cleary Gottlieb Steen & Hamilton, Greece’s legal adviser, has been paid about 6.52 million euros so far, the ministry added, without making clear if it would receive any additional payments in the future.
“The 74 million-euro total mentioned in the report is totally inaccurate,» the finance ministry said in a statement in response to a report published on the website of weekly newspaper Proto Thema.
The closing agents of the bond swap received 4 million euros, the ministry said without identifying them.
Greece’s Public Debt Management Agency named Deutsche Bank and HSBC as closing agents of the deal in a statement released earlier this month. (Reuters)
PS I get shampooning, haircut and forming for only 50 euro thus at a top hairdresser. But I have no debts :) Greece got the most expensive haircut treatment in the history of hairdressing EVER!
         expensive haircut!

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