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Insurance companies hold bonds worth € 2-2.5 billion

06 September 2011 / 13:09:57  GRReporter
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Private insurance companies operating in Greece hold government securities for not more than € 2-2.5 billion. The data are from the end of the first half of 2011. Until September 9, 2011, they have to declare their willingness to involve in the expected rollover of Greek bonds. It will be implemented through the local banks to which they belong or through their headquarters abroad. The process is supervised by the Bank of Greece.

For example, the bonds held by the Greece's largest insurance company Ethniki Asfalistiki will be recycled, rescheduled or restructured by the National Bank of Greece, which owns 100 per cent of its stake. The losses will be included in the balance sheet of the bank and the insurance company itself will get the new recycled bonds. The companies Eurolife EFG owned by EFG Eurobank, the Agricultural Insurance Company, which belongs to the Agricultural Bank, and the second largest Greek insurance company Interamerican, which belongs to Eureko, will follow the same procedure. Eureko, which holds a stake worth € 48 million, even announced that it will continue to support Greece in the period of crisis and will involve voluntarily in the recycling of Greek government bonds.

It turns out that the company Metlife Alico holds a large amount of Greek bonds. In its case, the rollover will take place abroad. The bonds owned by the companies Alianz, AXA, Credit Agricole and Generali will be recycled abroad too. The involvement of smaller insurance companies in the impending rollover is not clear yet, as for them the Greek government bonds haircut by 21 per cent will result in the need to collect additional capital.


Tags: RolloverPrivate insurance companiesGreek securitiesDebt crisisBanks
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