This page has been archived and commenting is disabled.
Reuters Reports That Hedge Funds Have Found Greek Default Trigger Loophole
While the general market mood is one of pre-default euphoria reminiscent of that in the pre-Lehman weekend, clouds may be brewing. As Reuters reports, "Some hedge funds have found a legal loophole they believe will force Greece to repay some of its debt in full, three sources close to the matter said on Thursday, in a move that would intensify the standoff between the country and its debtors." The loophole? A tiny €412.5 million bond issued by Hellenic Railways with a clause that "allows bondholders to argue that Greece is in default if it is trying to restructure or change the terms of its debt, the sources said. The creditors could already argue that Athens has defaulted, and if they buy up a quarter of that bond -- or enough of it not to be forced into the debt swap -- they can also then demand immediate repayment, a process known as acceleration." More: "The funds are now trying to buy up enough of the bond -- issued by state-owned Hellenic Railways and guaranteed by the government -- to force Greece to repay them in full, to the tune of some 400 million euros. If Greece refuses to do so, this may trigger similar provisions on other Greek railway bonds, potentially landing Athens with a bill of about 3 billion euros, with investors demanding immediate repayment, the sources said." Things could move very fast since the PSI results are due in 7 hours: "Sources close to Greece's negotiation fear the funds could already start the acceleration process by Friday, or next week, if they find they have a big enough majority."
And while the amount is nominal, once legislation has commenced that does in fact find Greece in default it could well derail the PSI process even retroactively as this outcome could be seen as a Matrial Adverse Change in the conditions for the PSI, as a par payout will certainly infuriate others who are not only getting crammed down on the current bonds, but have a 85% discount to look forward to on the "fresh start" bonds as well.
And finally, this is nothing new - the very same outcome will happen when Greece tries the UK-law bond exchange offer in a few weeks, which it will fail. Where Greece will get the up to €30 billion in cash to fund par payouts on that, and other foreign law bonds, is unclear - Greece has already said there will be no cash for holdouts under any CUSIP. And Europe will certainly not pay for the incremental cost of providing some evil, evil, hold out hedge funds with a par return, merely because they were not lazy and read the bond indenture cover to cover.
Naturally, one has to downplay this event:
It is unlikely the hedge funds could derail the overall debt swap, which will shave more than 100 billion euros off Greece's debt pile, a crucial precondition for receiving more international aid and staying in the euro.
The exchange has already been accepted by more than 75 percent of investors, a senior official told Reuters ahead of Thursday's 2000 GMT deadline.
The hedge funds have been targeting some of Greece's more investor-friendly foreign law bonds -- like the railway bond -- hoping to stop Athens from activating so-called Collective Action Clauses (CACs), used to impose losses on all holders.
This could then allow them to squeeze a bigger payout, potentially through lengthy court challenges, while creditors that do sign up to the bond swap face losses of 74 percent on their investments.
It doesn't stop with this particular bond:
Although these clauses only concern this one bond, the action by hedge funds could trigger clauses contained in other Greek railway bonds.
And because of the provisions in other bonds governed by English law, this could eventually affect more deals, potentially affecting up to 8-9 billion euros worth of debt, one of the sources said.
Maybe one should not count out the hedge funds just yet. As a reminder, those who do engage in international sovereign debt litigation stand to generate massive return if successful. Which at the end of the day is all that matters to the LPs.
»
- 17225 reads
- Printer-friendly version
- Send to friend
- advertisements -
Defaultistan
I don't think this is significant enough. The following is a real stretch.
"And while the amount is nominal, once legislation has commenced that does in fact find Greece in default it could well derail the PSI process even retroactively as this outcome could be seen as a Material Adverse Change in the conditions for the PSI, as a par payout will certainly infuriate others who are not only getting crammed down on the current bonds, but have a 85% discount to look forward to on the "fresh start" bonds as well"
"Nominal" hit the nail on the head. Other qualifiers are "could well" and "could be seen" and "will certainly infuriate others" [don't think so].
So many qualifiers, so little text. This makes me think the banks are actually going to pull this off.
Don't the Greek people know what's happening to them? Bank Banged!
I agree....we have already seen Tyler flashes us with headlines of how that low probability event of a disorderly default was some how, in his mind, a much more likely scenario.
Now we have to suffer this...and he complains about this very minor issue as "being played down". Looks to me someone has eaten some sour grapes on this swap and is trying to "play up" anything.
Maybe if we all just start chanting, "Iceland, Iceland, Iceland, Iceland,....."
The banks are going to fuck over the Greeks.
How can they not see this?
"ICEland! ICEland! ICE...!
Umm..wait a minmute, ISDA Decision Committee member knocking at my door
Greece is just going to fucking DEFAULT on these loans as well!
what the fuck kinda idiots are these hedgefunds?!?! It's like buying senior claims on a house when the thing is already ablaze and the arsonist is spraying it with more gasoline
Nothing like remodeling the kitchen while the house burns down.
Bullish....
Big returns from distressed debt eh, that only works for as long as the counterparties to the CDS are being bailed out with new money. When that stops you lose ALL your capital AND your 50% annualised...
Good luck with that. Let's just hope the system doesn't fall apart while you're in litigation eh, because then you lose your legal costs as well.
Buy gold...
They DO see this. Was in Greece last summer, and to a person each Greek citizen I talked with knew and fully understood they were being screwed by the big European and US banks. It's the Greek politicians who prostrating themselves and the Greek people for the banksters benefit. Perhaps even worse, the banksters actually know too that this will not work. The banksters must be tried for fraud and criminal conspiracy, starting w/Gold Man-Sachs, one key enablers of the fraud.
the same slimy greek citizens who sit their lazy, greasy asses in cafes pretending to work? Fuck them.
the same slimy bankers who kept lending them billions? fuck them
yes, fuck them too
how about both deadbeat borrower and deadbeat lender lose?
I am a huge fan for having criminal bankers in prison or hanged and for deadbeat "homeowners" to be finding somewhere to rent and true price discovery letting the market clear.
instead of lending/gifting the banks trillions, the Fed should have taken them over and fired everyone, incarcerated their management, and told the public the truth- "everything you pay for is now going up by 50% in price because of this."
I agree that banks should pay dearly, especially the large ones. They should be out of business and their top management incarcerated (or worse).
But do you honestly believe that the scumbag FED will hold its scumbag owners accountable? Do you honestly believe the bought-out scumbag government will enforce the law upon its owners, the FED?
At this point, only the people can enforce justice upon the criminal, corrupt, and illegitimate system. But, first their conditioning must be broken.
'At this point, only the people can enforce justice upon the criminal, corrupt, and illegitimate system. But, first their conditioning must be broken.' - Sounds like mob rule. If you want to know where this ends, go read up on the run up to the French Revolution. No more certain a way of destroying what remains of investment capital and throwing everyone else out of work...
The end becomes a self-fulfilling prophecy as the have-not , can-not deadbeats begin to dictate to the rest of society how they should live.
Good luck with that one, I'll be on my boat...
Harumph!
You can't up arrow the comment by "Withdrawn Sanction"
I think you would have alot of up arrows, I wanted to add one.
You watch a more "educated" American public.....and ask that question? Tsk, tsk.
I'm throwing the red flag on this one: Please cite the article in which Tyler said a disorderly default was a "much more likely scenario"
Are you joking? You have NO credibility.
http://www.zerohedge.com/news/more-psi-troubles-greek-swiss-franc-bondho...
Go back to the hole you trolled out of. Everyone here knows Tyler's pessimism is eternal.
You are an idiot. Take a good look at that chart again and look at the probability for a "disorderly default"
Idiots are ones who cannot read...you clearly lack the ability to comprehend the english language. The chart is from BNP, Its BNP's probablities. Moron. Go back to your bomb shelter, freak.
This thing starting to get the feel of a Scooby Doo episode - We would have gotten away with if it wasn't for you pesky kids
I think you're onto something there Shaggy. We all could learn a little bit from Velma and stick to the facts and stand up against presumed authority figures that try to dupe us.
And we can hang with the Globetrotters, too!
What's wrong with bomb shelters?
... a Pyrrhic victory. Check the deficit.
Greece burns 87 million euros per day.
Oy! How do they do that? Can you point me to a link? I know some Greeks, and they are very depressed about the whole thing.
On the other hand, they unanimously point out that this is the VERY BEST TIME to invest in Greece, as it is at its nadir. When else should one invest? Buy low, sell high. Right?
I think they might be on to something. Or maybe, they are just on something.
http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/
Just think MF Global. They do what they want and everyone just drags their feet. Nothing gets done.
aaaannnn it's gone!
On the other hand, they unanimously point out that this is the VERY BEST TIME to invest in Greece, as it is at its nadir.
INVEST in GREECE ????????
HaHaHaHa HeHeHe HaHaHaHa HeHeHe ............ HaHaHaHa HeHeHe HaHaHaHa HeHeHe HarHarHarHar !!!!!!!!!!!
Hey PhilB,
The one who looks like has eaten some sour grapes on this swap is you.
I suggest you wait for the actual official PSI results (at 1:00 am), before you whine here like a brainless bitter imbecile.
And since when an anonymous lowlife Greek bankster (the one who called multiple news agencies to tell them anonymously about the PSI participation rate before the actual count) is more reliable than Tyler?!
PhilB is right. The sentiment here was that this would play out in a disorderly fashion. It did not/has not. Maybe that will change. But so far it seems like the markets have taken this in stride. I find the hardest part is taking the information posted on here and seeing the truth in it and not necessarily acting on it. Because to act on it is to fight against a very stromg tide.
Re: "The sentiment here was that this would play out in a disorderly fashion."
This is not true.
The consensus here has always been that Greeks will be forced to use CACs and it will trigger CDS (not a market friendly event).
The jury is still out on this one.
And as far as the market reaction, it can be irrational and manipulated.
They are hoping it's "Runaway Train"
But it might just be "The Little Engine That Couldn't"
Meanwhile, Casey trader Jones is ridin' that train/ high on cocaine
They are have trouble getting meds into the country. Seriously. People are leaving their kids for others to take care of because they can't financially.
They now get more cuts. There will not be anyone left in the country to pay anything back. Why stay? What was the cause of the masses leaving Italy in the 1900 -1910 time frame? Food,,, the inability to buy food. What is the unemployment rate? Paper cannot solve centuries of problems... Just my thoughts..
Cheers !
Agreed. I feel like we're watching vultures picking at a roadkill carcass.
Where's the humanity? Seriously ... Greeks are abandoning their children because they can't feed them, but the European leaders are jumping through hoops to make sure that the banks survive ...
When you can no longer feed your kids, you are LONG PAST the time you should be realizing that you spend way too much time lounging in cafes pretending to work.
how have the greeks been able to feed themselves the last 3000 years? is there some sort of fishkill or crop failure there?
Don't you mean, gang-banked?
deleted. double post
Sorry...I can't buy the theory that the whole thing will fall apart on $400 million. It's all Bullshit! The can continues to be kicked down the ever winding road.
this is too much already...... tyler, please post a story about saving a stranded kitty from a tree branch..................
WHAT IS WITH YOU WAR MONGERS>>> Leave the fucking Cat alone!!
A kitten trapped for three days high in a tree in the Cooroy Cemetery is back home with its family after being rescued by a council arborist.
A nearby resident phoned the Sunshine Coast Council late last week after hearing the five-month-old kitten crying.
Local laws officer Mark Revere went to the scene and found the kitten firmly wedged high up in a pine tree.
http://www.sunshinecoastdaily.com.au/story/2008/10/02/arborist-rescues-kitten-stuck-tree/
YEA! They saved the kitty!
Although, I think the better title would have been:
"Pussy saved by men in uniform"
A typo would it make even more attractive:
"Pussy shaved by men in uniform"
How many CDSs (Cat De-tree Swaps) were triggered in the process?
This kitty story is more apres pos of what the Banksters are doing to Greece:
http://www.cbsatlanta.com/story/17105390/fulton-county-da-will-not-pursue-animal-cruelty-case
"Walker said he saw Wearing use a branch to knock a cat out of a tree in his backyard. Then he said Wearing allowed his two pit bulls to maul the cat to death. According to Walker, Wearing even bragged about the incident on his Facebook page."
Have a good friend who is a retired first-responder (and who is an animal lover volunteering for the local Humane society). He says they hate getting those kitty calls, and sometimes really hand the silly owner his hat.
As he said, funny no one has ever seen a cat skeleton in a tree -
My cats will do it for show. Ignore them awhile and they find a way to get back down.
What are they going to do? Pull up the rails and sell them for scrap iron? That money is gone.
ATHF +1!!
Damn. Shoulda read the fine print, bitchez!
Damn Fine print....gets me every time. hahaha
Damn its like watching an episode of Real Housebitches of Europe!!
only the killer finish goes right across the pond and kicks the New York boys right between the legs
Hands up who wants to see the happy ending?
That was f..king funny! +1 I see some WB-7 ideas in that comment!
Tragedy, meet farce.
Farce, meet Senior Official.
Wouldn't the CDS's not getting triggered be a far bigger problem ?
Would this trigger CDS? I'm kinda new to all this.
nein..contract law is suspended until further notice, per High Command.
Would this trigger CDS? I'm kinda new to all this.
Nah, nothing triggers CDS anymore.
It's like buying car insurance, paying premiums faithfully every month, then totaling your car in a wreck and discovering it's not covered.
CDS is the biggest "insurance" ponzi scheme on the planet. Somewhere around $1,500 trillion. That's $1.5 QUADrillion.
It looks like someone is always holding the last Ace. You will default.
Good - maybe some of those hedge funds will teach those smarmy, greasy, incompetent, criminally corrupt politicians a lesson. I hope Greece does "default" and get over and done with once and for all. I'm sick to death of these stupid politicians mugging us all off and living in Alice in Wonderland.
Holy iShit!!
Does that include the $100+ billion of Greek bonds already owned by the ECB?
Just askin'...
No, it doesn't.
Mr Vaporized meet Mr Acceleration
The longer this drags out, the more opportunity there is to discover loopholes like this one.
If the loophole is just now being discovered, whoever was responsible for buying the bonds in the first place ought to have his head shaved with a cheese grater for not knowing what he was buying up front.
Greece is going to default! End of the world.
Wait, Greece has a debt deal. World saved.
Greece is going to default! End of the world.
Wait, Greece has a debt deal. World saved.
Greece is going to default! End of the world.
Wait, Greece has a debt deal. World saved.
Its been a good couple of thousand years since Greece has felt so important to Western Civilization...I guess its 15 minutes of fame is almost up...for now.
How appropriate...they are about to plunder the world again too...
SGT Schultz,
It is obvious we know nnnnnnnnnnnnnnnnothing!
Little fly in the olive oil spoils the whole vat.
I hope Greece spit's a loogey in the banker's vat........
I sense "deadline postponement" is afoot.
no doubt about it ... or another retroactive rule change ... but lying about the number of volunteers sounds like the easiest thing to do, so I vote for that ...
Ha ha. Force Greece to pay for some of it. That is the fucking joke of the day. These guys are in denial. Take the fucking loss. Let the system collapse and lets move the fuck on. JFC!
Reuters Reports that UK hates Euro and Greece will be under UK-law when it comes to bonds
We all know the Hands Of ZEUS and HERCULES are Tied. Bring on " MEDUSA /ASUDEM in two weeks ya ECB priority BITCHEZ!
SLEWIE STYLE! OUT...
This is becoming so warped it's not even funny.
What do the Greeks and ambulances have in common?
They both get loaded from the rear, and go WHOO WHOO!!!
take a page from Iceland's book, and tell those banker pricks to fuck off
Hedge funds found a loop hole? Well gosh darn, who would have thought that?
wouldnt you try if you were being forced into an agreement that would siphon 75% of your investment?
That's a pretty big loophole. Why didn't they know about it when they bought the fucking bonds? Did they even bother to know what they were buying?
I truely feel for the Geek people (I know that's not a very popular opinion on ZH) -- they have totally been lost from all of this discussion ... never before in the history of the world have so many demanded their piece of flesh from someone with so little to give ...
It's all just not sitting well with me tonight
Yep, and next up to get Greek kornholed is the american people.
Hey I do feel bad for the Greeks. I mean if you have to give up your children because you can't feed them there is something inherently wrong. This is why the system needs to be reset. When blood gets shed by the people it will be over right quick. It will make the Arab Spring look like a fucking joke.
I guess you don't know very much about history. Back in the day, when a piece of flesh was demanded, they meant that literally!
Greeks don't know how good they have it!
You must have skipped history. WWI ends, Treaty of Versailles, reparations payable only in gold, German hyperinflation follows.
how bout balancing that out. there's that part of history where the germans invaded greece and subjugated them. and machine gunned any greek citizen that is caught resisting to the point of joining the underground. years ago there i was in a little mountain village where in the war the nazis had taken all the men outside of town and shot them down because underground activity was suspected. they left the bodies for their wives and children to drag home
@bdc63
"I truely feel for the Geek people (I know that's not a very popular opinion on ZH)"
I think your sentiment is in fact widely held here on ZH. It is just rarely expressed.
grasping at straws...game over...it's their ball...they decide the rules...Greece wins...naysayers lose...plain and simple.
Lawyers. It's always the lawyers. On my deathbed I'm going to hire the biggest shister I can to find the ultimate loophole.
I hope that little shitbag RailRoad deal works! It would save a lot of hardship for an Ecomomy that is slave labor to it's creditors.
I'm not condoning Greek life-styles, but a swift default would be welcome! Italy ,France,Spain,Portugal Ect.. are chomping at the BIT, on this.
Swift default? You mean banks and hedge funds taking actual losses for reckless behavior? Impossible!
Absolutely correct. I want a gander at those balance sheets. Banks vs Hedge Funds ? Thank God the Vultures were out there, or the travesty would be ( FAR) worse. I get your sarc/ though.
Are you kidding me? That is just the tip of the iceberg! What about all the off balance shit? Dark pools, CDS, derivatives. It's what you don't know is in the closet that is scary!
I mean if there are 1.5 quadrillion in derivatives and 600 trillion of that is in US banks the rest has to reside somewhere right? The Chinese can't be that fucking stupid.
Sanctimonious Thoughts? I like you already! definition
Oh dear! Feels like watching the final table of the WSOP (P=>Ponzi)
Greece is all in with 2-7 offsuit. Hedgies hole cards seem to be nice. Some other players still at the table. Who is holding the nuts? Anybody knows the rivercard? Seems like somebody is going to be rivered.
Isn't the bank winning always - at least as long as everyone keeps playing?
Anyway - the pot is nothing but a pile of debt full of counterparty risk.
No risk - no fun!
Ay dios mios Tyler
No mas mierda de ponzi por favor!
Que coman torta.
So has the CDS been triggered or not ?
"trying to get blood out of a turnip" comes to mind
So when have laws or contracts ever stopped these asshats?
Just look at Obama and the bondholders with GM, I would expect simiiar tactics in this case.
Question becomes at this point, why would any individual hold a bond at this point?
This is fucking amazing,,,,,
http://www.youtube.com/watch?feature=player_embedded&v=5zNwOeyuG84
Its full on in your face, "we don't answer to congress" and they feel secure enough to say that on record. Most people are still asleep...zzz...
Found on Market Ticker:
http://www.gpo.gov/fdsys/pkg/BILLS-112hconres107ih/pdf/BILLS-112hconres1...
Glad to see some of the people in Congress beginning to at least act as if they are waking up.
It'll die in committee.
And the Kochs are trying to take control over Cato Institute.
Scumbags.
Come on now. Is it really plausible that the banksters
are going to let a little quibbling clause in
a puny railway issue derail their railroading
of all assets to themselves when they have
already steamrolled much larger greed
bumps in contract law. The premise has
been demonstrated time and again to be
preposterous.
They should have just defaulted and been done with it.
The Greeks screwed themselves by electing a bunch of LIARS who promised everything by paying for nothing.
Germany and France fucked the Greeks by selling defense (what the fuck are they defending anyway?) weaponry that they could not afford and didn't need.
I lost interest when I saw that not one of those multi billon dollar contracts were canceled or delayed.
Please, stop this hype. Greece has defaulted, but no one cares. Bondholders were lining up to agree; 95 percent or so. It appears that Merkel cs. were right to insist on this PSI, and of course no Armageddon, credit event, CDS-trigger, CDS market collapse or hyper-deleveraging arises. One can only wonder why it took so long to accomplish this non-event. Friday market rally, just as I predicted for so many months.
I agree. "Railway bonds"? hahahaha. Is the rail line even running? I was told "it hasn't been for over a year now." well...if that's the case "repayment is the least of your worries." the fact of the matter is "Greece" for all intents and purposes has ceased to exist. not that the "Greek Government" can't decide to change their mind on this condition of course.
The "Old Fritz" at it's best ...
Such a pity I cannot change my nick.
you do realise that 90% is with the cacs invoked....which is a cds trigger ...try reading the news properly... or just try reading properly...
When at first you start to deceive :)
Wonderful heh heh heh. Now, will my counterparty with no reserves pay up on my CDS?
Are we there yet? Wow, I just wish it would hurry on up and get here, whatever it is that's coming.
I'm ready and been prepared.
Trust me, the coup is long since complete, and you're living in Brave New World - "it" isn't showing up anytime soon. Might as well eat the beans and rice before the expiration date. They'll be plenty to eat, albeit at higher and higher prices.
shocking one atty found a loophole in another atty's contract... Its called the Litigators' Full Employment Act.
The Hellenic Railways wikipedia page says they lost €576 million on revenues of €105 million.
Are they that fucked up?
Talk about the Greeks not being able to feed their children. Wait till the shit hits the fan here in the USA...and it absolutely will hit the fan, and soon.
Greece will look like a Sunday picnic compared to the mayhem we're in for.
I'm glad I live where I do and not in a large urban area. Life's gonna get ugly, especially for the political classes here in the US. Makes my heart warm too :)
Guns and gold bitchez!
retracted
Can we take a break and start Greece, Season 2 this fall? I am starting to lose total interest, total Greece overload. Just wait till they're done with this one and then we can harp on Spain for the next year. Wow. I think Iran will dwarf all this stupid shit but who knows.
Shit is about to go down. Did anyone see the just released January trade data from Australia? For anyone who was waiting for reliable, hard evidence of a Chinese hard landing, you need to see why Oz just printed a A$673M trade deficit on expectations of a A$1.5B surplus. Exports to China down 24%, Japan down 34%, iron ore down 23%.
Things are so unstable right now, a butterfly really could give us that final push over the edge. And don't get me started on solar flares.
'08's going to look like a walk in the park.
Japan up 150 points tonight...It's all Bullshit!
It's bullish! Better than expectd! Just wait until tomorrow, you'll see! On NBC!
Right. It's been going down for years now and like others say, markets are up, up, up!
Read Gamma's prediction above (http://www.zerohedge.com/news/reuters-reports-hedge-funds-have-found-gre...). That seems a bit more realistic.
I'm not happy about it, but nothing will happen next week or next quarter.
Will Naked CDS payout if ISDA defines this as a credit event?
File under Cry Wolf. The TBTFs and TPTB have matters firmly in hand.
Not agreein' just sayin' - is there any doubt at this point that the Epsons are running full speed and that, even though that is true, the proliferation of free money (to the 1%ers), posting of shit as collateral, etc., is all working like a charm. A guy said to me today how good he is feeling because the stock market is up - Ben's wealth effect is clearly winning hearts and minds. The Western World's sheep are quiet and grazing peacefully, the Iran war is unlikely anytime soon, all is well. The evidence clearly points in that direction. Maybe we do make reality bend to our wishes hereabouts.
When the dollar bubble finally pops(my guess is between 2013 to 2016, after the Euro crashes), that is when the false reality we have been force fed will come crashing down. It may also be the start of WWIII.
let them eat
baklava
What happens to 1yr Greek bond yields that are over 1000% now. If this debt swap clusterfuck goes without triggering CDS, do their bond yields start to drop or shoot to the moon ?
I thought the BIG DEAL is the waterfall bifurcation of all sovereign debt bonds this could start... not CCDS trigger?
Fat finger - CDS
Here's the deal boys and girls:
The Greeks are not gonna pay and the big losers are the shadow banksters who thought $1.5 Quadrillion CDS was actually going to provide hedging. In all truth, $1.5 Quadrillion CDS is now shown to be absoutely worthless because of counterparty risk. If the Greeks don't wanna pay, no one will pay. CDS game over.
Most excellent. Hope you're right. Would love to see the CDS foolishness end, as it should have in 2008.
http://blogs.wsj.com/deals/2010/06/30/joe-cassanos-testimony-about-aig/
Joe Cassano - the man with uncovered options
Couldn't Greece simply give them the Railway in lieu ? I mean
http://www.nytimes.com/2010/07/21/business/global/21rail.html
Losses at Hellenic Railways, however, continue to mount — at the rate of 3 million euros ($3.8 million) a day. Its total debt has increased to $13 billion, or about 5 percent of Greece’s gross domestic product............Analysts estimate the total to be around $33.6 billion, a sum that would add another 11 percentage points to Greece’s current debt level of about 120 percent of gross domestic product.
For the better part of a decade, Greece has provided sovereign backing to Hellenic Railways, thus allowing it to borrow billions from accommodating foreigners even though the company’s finances are so skewed that it pays three times as much on interest expenses than it collects in revenue.
a company with 100 million euros in revenue can no longer borrow 1 billion euros a year
Hellenic Railways reported a loss of more than $1 billion in 2008, on sales of about $253 million
Between 2000 and 2009, the cost of the company’s payroll soared by 50 percent even as overall personnel decreased by 30 percent.
awwwww... and who in his right mind would buy this company from the Hellenic Republic? the first thing you would have to do is to cut their salaries and fire lots of workers.
if you are a foreigner, it's hell. and if you are in any way a German, it would be double hell.