As New Greek Bonds Tumble To All Time Lows, Is Greece About To Re-Default In 5 Days?

Thursday, May 10, 2012
By Paul Martin

by Tyler Durden
ZeroHedge.com
05/10/2012

Back on May 5th, before the shocking outcome of the Greek elections was known, and before anyone had even heard of the May 15th €430 million bond maturity, we explicitly warned that in the case of continued anarchy in the country (predicting the inability to form a gogvernment) that, “it is unlikely that Greece can persist under anarchy, especially with another critical event coming due: a €430 million payment on an international law bond that matures on May 15, and whose owners have held out from the PSI process (remember that? apparently not all has been swept under the rug). In fact we now know that the Norwegian sovereign wealth fund could very well be the entity that will demand payment and when it doesn’t get it will promptly proceed to sue Greece.” Indeed, as explained, the bond is held by non-PSI holders, and it has international-law covenants, in other words by parties non compliant to the PSI agreement and whose claims must be satisfied unless total chaos were to break out in the sovereign arena! Which means that for all the rhetoric about the successful Greek PSI with acceptance rates of nearly 97%, it is one tiny issue that can derail the whole process and send Greece into an out of control default.

The Rest…HERE

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