Hedge fund officials said that they would not accept a net present value loss that was higher than 50%, and were quoted in an e-mail saying, “Vega needs to start considering all available legal options to refuse and challenge any exchange” that leads to a loss of more than 50%.Instead of getting 100% of their money plus interest now (or early next year) they have agreed to get 15% of their money now and accept new Greek bonds (what are those worth?) for 35% of their money. The other 50% is the cost of doing business with European sovereign nations. But now the Greeks want to pay an interest rate, so low that the net present value of those bonds are less than 35% of the amount they originally agreed to pay, and hits the bondholders with a more-than-50% loss. Which is what everybody thought they just agreed to.
So they definitely lied once. (When they agreed to return 100% of principle plus interest.) And now they seem to be lying again. (Offering less than 50 cents on the Euro.) Why would anyone believe anything that the Greek government ever says, ever again?
And the trampling of democracy continues.
Officials in the new government have conceded that a tentative Feb. 19 date for general elections is likely to be delayed to sometime in the spring, given the number of reforms requiring parliamentary approval.Can't have elections until the Greeks' sovereignty is handed over to Brussels, or Berlin.
I wonder how long the unelected government of Greece can go on holding off elections for "just a little while" because there are things Brussels' needs to have them do?