Greek PM: No buyback of pension bond holdings

AP News
Posted: Dec 01, 2012 5:44 PM

ATHENS, Greece (AP) — Greek prime minister says pension funds won't be part of the country's bond buyback scheme, designed to shave nearly €30 billion ($39 billion) off the country's debt.

In an interview with the Sunday edition of Ethnos newspaper, Antonis Samaras says Greek banks will benefit from the transaction, because the book value of the bonds they hold is really low.

Greek bank stocks have been hit over the past week after it became clear that the buyback scheme was a precondition for the release of nearly €44 billion ($57 billion) in bailout aid from Greece's creditors.

Samaras says buying back the holdings of Greece's pension funds was never in play because this would not reduce Greece's debt.