Thursday 23 February 2012

Is the PSI a done deal?

The law for the PSI is being passed by the Greek parliament today. It shifts the blame for the mandatory restructuring to the Bondholders. In other words the Bondholders along with submitting their bonds would also vote to make the deal binding for anyone. This is a rather sinister plan aiming to deflect the blame from the Hellenic Republic.
One should expect within the next few hours bondholders to challenge the validity of this law in international and possibly Greek courts. The purpose of this is to delay the onset of the PSI and have at least the near term bonds (March) paid. It is a delaying tactic as we already know the decision of the court. It would either say it is not in his competence or jurisdiction or in the case of a Greek court it would dismiss it immediately. The fun and tears are ahead of us