Greek gov’t issues ministerial act on the use of CoCos
The Greek government on Tuesday issued a ministerial council act on the details of a bank recapitalization plan, envisaging an 8.0 pct interest on bonds and the operation of CoCos (convertible bonds) with which Hellenic Financial Stability Fund will cover additional capital needs of Greek banks.
The ministerial act said that these bonds will carry an annual interest rate of 8.0 pct and that the bonds would be automatically converted into common shares if for any reason the credit institution failed to pay interest in two payment dates (not necessarily successive).
Credit institutions will be free to choose repayment of the bonds, either part or in full, in their initial nominal value, plus interest, in cash. Each bond will have a nominal value of 100,000 euros and an indefinite maturity without any defined repayment date.
You may be interested
Sample poll: Emmanuel Macron (23.7%) and Marine LePen (21.7%) to face off in second roundPanos - Apr 23, 2017
According to the first estimates from the exit polls, Emmanuel Macron wins 23.7% to Marine Lepen’s 21.7%. It is the…
Thomsen: Greece, institutions are close to a staff-level agreementilias1 - Apr 23, 2017
The Director of the International Monetary Fund's European Department, Poul Thomsen, expressed optimism on Friday that Greece and its lenders…
Ecumenical Patriarch Bartholomew to hold open leture in Geneva on April 24ilias1 - Apr 23, 2017
Ecumenical Patriarch Bartholomew will hold an open public lecture at the headquarters of the World Council of Churches in Geneva…