EFSF bondholders won’t be impacted by Greek default
Greece’s default on its International Monetary Fund loans does not affect the eurozone bailout fund’s capacity to repay its bondholders, the fund said on Wednesday.
“The Greek non-payment has no influence on the EFSF’s capacity to repay its bondholders. Investors know that EFSF bonds benefit from a very strong guarantee structure,” the European Financial Stability Facility said.
“The EFSF also takes note of the fact that the IMF received a request yesterday from the Greek authorities for an extension of Greece’s repayment obligation that fell due yesterday,” it said.
The EFSF added an IMF default could “constitute an event of default for certain EFSF loans” but it was still analyzing the situation.
[Reuters]
