The main elements of the Athens bailout
Published 22/02/2012 | 05:00
• Private investors accepted deeper nominal losses on the Greek bond portfolios of 53.5pc -- deeper than the 50pc agreed in October -- which will reduce privately held debt of Greece by €107bn.
• Investors also agreed to a different coupon than initially discussed on the 30-year bonds that will replace existing Greek paper. The coupon on the new bonds will be 2pc from February 2012 to February 2015, then rise to 3pc for the next six years, and to 4.3pc thereafter until February 2042.
• Eurozone governments, which have made bilateral loans to Greece under the first bailout from May 2010, agreed to lower the margin on the loans to 150 basis points, which contributed to the reduction of Greek debt with 2.8 percentage points.
• Eurozone governments in countries whose central banks hold Greek government bonds in their investment portfolios agreed to pass on to Greece an amount equal to any future income accruing to their national central bank stemming from this portfolio until 2020. This will cut Greek debt by 1.8 percentage points by 2020.
• To make sure Greece honours its debt obligations Athens will pay an amount corresponding to the coming quarter's debt service directly to a segregated account of Greece's paying agent. Greece also promised to introduce over the next two months into its law a provision ensuring that priority is granted to debt-servicing payments.
• Representatives of the Commission, the IMF and the ECB, the so-called troika, will have "a permanent presence" in Athens to ensure reforms agreed are implemented.