Bloomberg News

Greek Banker Sallas Says Higher Debt Swap Loss of Little Benefit

October 14, 2011

Oct. 14 (Bloomberg) -- Piraeus Bank Chairman Michalis Sallas said talk of increasing the loss borne by bondholders to 50 percent under a planned voluntary swap of Greek debt would result in few savings and force the Greek state to resort to more borrowing from international creditors.

“The benefit would be about 20 billion euros to 25 billion euros,” Sallas, the head of the country’s fourth-biggest bank, said in an e-mailed statement today. “Greece will be forced again to resort to European countries and the IMF for loans to boost its social security funds and recapitalise its banks.”

Sallas said Greek banks, pension funds and insurance companies made up more than half the investors who had pledged to take part in the swap, which proposed a 21 percent writedown.

To contact the editor responsible for this story: Maria Petrakis at

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