Allianz and munich re exchange greek bonds
Allianz CEO michael diekmann said the debt restructuring was an important step toward solving greece’s economic problems and stabilizing the eurozone, "from which both our customers and we as investors will benefit equally."
With this step, the private creditors waive 53.5 percent of the nominal value of their greek government bonds and receive new securities with maturities of up to 20 years for the remaining amount. Part of it is guaranteed by the european bailout fund EFSF.
Allianz and munchner ruckversicherung had already written down their greek government bonds a few months ago to the current market value of 24.7 and 23 percent of par, respectively. This means that allianz now only has 310 million euros on its books, while munich re has around 400 million euros. Whether the value will change after the rescheduling, only the market can answer, said a spokeswoman for munchner ruck.
Allianz CEO diekmann says broad acceptance of debt restructuring offer would be positive signal for greece and capital markets. Greek government to announce on friday how many investors are willing to convert. A high level of participation by private investors is a prerequisite for the disbursement of the second aid package for the heavily indebted country.
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