Greece's Growth-Linked Debt Buyback Spurs Investor Concerns
A group of investors holding Greece's GDP-linked warrants has expressed concern over the government's plan to repurchase these securities. Greece intends to buy back the debt for a low call price, prompting investors to seek legal clarity. The situation echoes previous restructurings in Argentina and Ukraine.
Investors in Greece's GDP-linked debt have banded together following the government's announcement of a buyback plan. The move aims to reclaim outstanding warrants due in 2042, offering a call price of just over 25 cents on the euro.
The concerned group, representing large institutional holders, controls over 40% of these warrants. They have raised doubts about the calculation of the call price and are currently seeking judgment from an English court on its legal standing.
This action by Greece is part of a broader strategy to address remnants of its debt crisis years, yet investors are wary due to potential financial implications. Similar debt instruments have been issued in past global economic restructurings.
(With inputs from agencies.)
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- Greece
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- GDP-linked
- debt
- buyback
- warrants
- securities
- growth
- EU
- debt-restructuring
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