Valuation of the Greek PSI deal (February 29, 2012)
Valuation of the Greek PSI deal (February 29, 2012)
Greece Focus Notes
29 Φεβρουαρίου 2012
The present report constitutes the third installment of a comprehensive Eurobank EFG Research study on the new €130bn bailout package for Greece that was officially endorsed by the February 21, 2012 Eurogroup. It takes a close look at the terms of the debt exchange offer (PSI) and provides a valuation of its components under various “exit yield” assumptions. The first installment of our study, published on February 21, provided a detailed overview on the main parameters and conditionality of the new rescue program as well as an updated timeline of the key dates and events in the crucial weeks ahead. The second one, released late last week, offered a quantitative analysis on the benefits of the new package for the country’s sovereign solvency outlook as well as the evolution of the government’s borrowing needs and sources of funding until 2020.
