Greece Deal Subject To UK Greek Bonds Under UK Law

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The Greek deal hinges upon a large percentage of bond holders accepting a loss. A voluntary loss, which does not trigger any nasty CDS (credit default swaps). Bonds are subject to bond law in the land they were issued. The EU can do want the want with the bonds issued in the Eurozone and Greece itself, however Greece has $25bn (+) euros of bond issued under UK law and that’s the rather big fly in the very running ointment.
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The UK bonds are not mention is the first video, but this what Charles Dallara of the IIF is hoping that the holders of UK Greek bonds will do the right thing for Greece and lose 70%, rather than get 100% of all their monies back from a CDS trigger. Ha ha ha ha. Go you UK bond holder and do the right thing for Greece and force a Greek default, and their exit of the Euro. Just take a look at Iceland!

Sources: Wall Street Journal, Zerohedge.com

Must watch video after the jump, via the BBC : http://news.bbc.co.uk/2/hi/programmes/newsnight/9698394.stm

Of course the above is only one a many issues that have to be agreed before March 20 D day !

And there is this…

More on Greek issue..

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