Greek Senior Bank Bonds Suffer
- Written by Maria Athens
Greek banks containing senior bonds suffered a hit, after Euro region finance ministers secured deposits from any possible deficits, resulting from the country's bailout.
Dutch Finance Minister Jeroen Dijsselbloem, who also serves as the Eurogroup's President, stated recently that bankers making deposits will be protected during Greece's debt restructuring.
The Eurogroup leader explained following a lengthy Brussels meeting to the media, "Bail-in of depositors will be explicitly excluded" from European Union mandates, so that private investors also share the price of mending struggling banks.
As reported by Bloomberg, Piraeus Bank SA's senior unsecured 5% March 2017 bonds dipped 27% marking 38 cents, and Alpha Bank AE's senior unsecured 3.375% notes due June 2017, decreased by 15%, equalling 58 cents.
The nation's euro creditors created a bailout prerequisite, the European Union's Bank Resolution and Recovery Directive (BRRD), that allows for smoother enforcements of losses on senior collectors.
(Source: Bloomberg)
