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Greece to pay investors who rejected bond swap

AP News
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Posted: May 15, 2012 3:39 PM
Greece to pay investors who rejected bond swap

Greece's finance ministry says it will pay back an outstanding (EURO)435 million ($558.67 million) bond that is held by investors who had rejected the country's debt writedown.

Greece agreed the writedown with almost all its private creditors in March. In that deal, holders of Greek debt swap their bonds for new ones with later maturity dates and lower interest rates. A minority of investors _ owning (EURO)6.4 billion out of more than (EURO)200 billion in privately-held bonds _ declined to participate, risking the chance that Greece might not pay them anything at all.

The ministry, however, said it would make "timely payment" on the principle and interest of one such bond maturing on Tuesday.

The announcement came as talks to form a government collapsed, leading the country into new elections.