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Greece to Pay €12.4 Million for Counseling in Bonds Buy Back

Deutsche Bank and Morgan Stanley help Greece in the process of bonds buy back so that it will be in favor of the Greek state. For this reason the two banks will receive – are you sitting? – 11.7 million euro. Should the buy back won’t bring the expected results, Greece will pay them 700,000 euro to cover legal and other expenses. At the same time, law firm CLEARY/GOTTLIEB/STEEN & HAMILTON will be paid 700,000 euro for providing legal services to bonds pay back.

These payment decisions have been made public by Deputy Finance Minister Christos Staikouras on Tuesday.

Deutsche Bank will carry out duties “Lead Structuring Agent”, and “Dealer Manager” together with Morgan Stanley for “planning, management, promotion and integration process to buy back bonds by the private sector as part of the November 27, 2012 statement of Eurogroup “.

In particular, DB and Morgan Stanley will help:

– Design process of buy back, drafting of invitations, pricing in this manner to achieve optimum contribution to achieving sustainability of the Public Debt,

– Identify and communicate with bondholders and provide information and clarifications to them in relation to questions they pose throughout the course of the repurchase, through extensive global network with the availability of all necessary personnel and tools,

– Distribution of all necessary material concerning invitations to the bondholders, taking into account any applicable local legal restrictions, using additional services from specialized companies for the collection and analysis of tenders,

– To assist in the determination of acceptable bids depending on the offered price amounts per order to achieve optimal impairment of the Public Debt.

The remuneration of the two banks’ depends on the size of the nominal amount of debt securities that will be bought back and in any case it will not exceed 11.7 million euro, including other utilities and expenses and will be paid upon completion of the repurchase. In case of non-completion of the repurchase will be paid compensation amounting to 700,000 euros to cover legal and other costs.

With another decision Staikouras authorizes the payment of up to € 700,000 in the law firm CLEARY GOTTLIEB STEEN and HAMILTON providing legal services to repurchase the bonds.

PS 12,400,000 euro? ah, the Greek government and the Greek banks apparently have no competent advisers, I suppose. How many people without job and families without income could lcome along with this money?

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One comment

  1. pay out $12.4 M, then receive a $6.2 M kickback under the table! They’re looting the national coffer!