Top 40 Holders of Greek Government bonds and Greek debt (July 2011)

 

 Top 40 holders of Greek Government debt

Top 40 holders of Greek Government Bonds

By looking at that table is quite clear why the sovereign crisis is a Pan-European issue. Most of the major European banks are holding Greek Bonds and that’s the major reason that Europeans are afraid for a possible contagion if they let Greece go down.

As explained in another blog post “Who owns the Greek Government debt and why restructuring is not so easy” things are quite complicated and it will need a lot of effort to escape from that mess.

Policy makers need to find a solution that will not just ensure the saving of the euro but also prevent future similar problems.

Someone might wonder if the stockholders of those publicly listed firms in the table, had any idea about their exposure on Greek debt? I really doubt about it!

9 thoughts on “Top 40 Holders of Greek Government bonds and Greek debt (July 2011)

  1. Pingback: Who owns the Greek Government debt and why restructuring is not so easy | Financial Arena

  2. Interesting post. I wonder what does 50% cut discussed now actually mean? E.g. ECB has substantial holdings of greek debt. Would it have to book a loss? Does it then have to be recapitalized (I think it’s actual capital is about Eur 10b only, nevermind the trillion in currency bills). What about EU loans to greece, are they at risk of this 50% haircut? What about Greek pension funds, or their central bank? Since pension liabilities remain, they would have to shift some government revenue there eventually, essentially making any haircut now meaningless… Plus, the missing piece is at least E60b loss by “others” — how will the world financial system handle this? Who are these others? Do hedge funds and pension funds worldwide really have that much greek debt on their books?

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  4. Denis,

    Thank you for your comment.

    Actually, based on the current plans, the discussed “haircut” will be applied only to bonds held by private sector holders (banks, pension funds etc) with maturities up to 2020 (around 135bln EUR) and not the Greek govt bonds held by the ECB, as ECB officials have declared that they will not participate in the voluntary rollover+haircut. (I am translating an article I wrote this week on PSI and will post in the following days-in the meantime you can try google translate..)
    The EU loans will be greatly affected if we have a huge haircut in bonds held by Greek banks as they will need to recapitalize and the ECB has threatened that should we have a 50-60% haircut it will not accept Greek debt as collateral.
    All the discussion is around the capacity of the EFSF and the possibility of issuance of Euro-Bond BUT politicians struggle to agree on it and that makes things even more volatile while Greece keeps on delaying its decade needed structural reforms.
    I have mentioned in a comment on my previous post “Who owns the Greek Government debt and why restructuring is not so easy” (http://www.leimonis.com/2011/05/mainholdersofgreekdebt/) that Europeans cannot let Greece default until they secure that any possible collapse will not affect their banks/pension funds and cause contagion in the EU banking system. They do hold substantial part of Greek debt and that’s why Greece hasn’t defaulted for good…yet.

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