Athens News Agency: News in English, 07-04-20

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] PM to chair expanded meeting on Nat'l Strategic Reference Framework on Sunday

[02] JP Morgan offer to annul controversial structured bond

[01] PM to chair expanded meeting on Nat'l Strategic Reference Framework on Sunday

The meeting will be attended by Economy and Finance Minister George Alogoskoufis, Interior Minister Prokopis Pavlopoulos, Deputy Minister Christos Folias and Deputy Interior Minister Thanassis Nakos, as well as regional heads of the country's 13 EU-mandated administrative regions, government spokesman Theodoros Roussopoulos told a regular press briefing.

Roussopoulos said the NSRF was a seminal issue, which deals with billions of euros in EU funds earmarked for Greece, which he said the government succeeded in safeguarding during negotiations with the European Union.

Replying to questions, he said the meeting was scheduled for Sunday so that regional leaders would be able to come to Athens for the meeting.

The National Strategic Reference Framework is a new document required by EU regulations, in which member-states outline their strategy for spending Structural Funds. It relates to the overall Community Strategic Guidelines which apply to the whole of the EU. The whole process is very closely aligned to the Lisbon agenda and each NSRF has to clearly show how the actions it proposes will further the EU push for competitiveness, growth and more and better jobs with increased social cohesion.

Meanwhile, Karamanlis conferred with his ruling New Democracy party (ND) secretary Lefteris Zagoritis on Friday to discuss the course of preparations for the ND Congress, internal party elections in the secondary bodies, and the outcome of Thursday's elections in the Local Union of Municipalities and Communities of Attica Prefecture (TEDKNA).

Caption: ANA-MPA file photo of Karamanlis.

[02] JP Morgan offer to annul controversial structured bond

The purchase of the specific bond by the state-run civil servants' supplementary fund under questionable terms caused a political firestorm in the country between the government and opposition, with the former tabling urgent legislation envisioning stricter rules for the management of funds' reserves and investments, but with the opposition referring to fraudelent practises and sleaze.

The investment bank, in a press release, said it hoped the bond would be repurchased by all participants in transactions that followed, so that its current holders - including pension funds - would be reimbursed the money they allocated to purchase it. The firm also stressed that "proceeds from transactions of the Greek structured bond were in line with current market standards for similar transactions.

JP Morgan said its offer aimed at annulling a structured bond, worth 280 million euros, issued by the Hellenic (Greek) Republic on Feb. 22, 2007. The bond was later sold to North Asset Management (NAM), according to standard rules of the market. In its announcement, the investment firm said it would repurchase the bond from NAM at the same price it sold it, at 92.95 pct of its nominal value. After the repurchase, JP Morgan plans to submit an offer to return the bond to the Hellenic Republic under the initial terms and annul a swap agreement, ensuring that the Hellenic Republic suffered no damages from the transaction.

JP Morgan said it hoped that all participants in the transactions over the Greek structured bond would follow its move in repurchasing the bond. The investment firm said it believed that current holders of the bond would take back their money in full.

"Our wish in all this process was the do the right thing for our customer, Hellenic Republic. The bond, which we underwrite, is a standard practice for several issuers, including EU member-states, seeking borrowing under favorable terms. The Greek state has issued more than 50 such bonds since 1999. We believe, however, that our proposal to repurchase to bond and annul the swap agreement would facilitate efforts to finding the best solution to the matter".

Gov't reaction

Replying to questions during a regular press briefing later, government spokesman Theodoros Roussopoulos said the government will examine all the aspects of the JP Morgan proposal, with its criteria being a full restoration of losses that may have resulted from this transaction.

Meanwhile, a Coalition of the Left (Synaspismos) political bureau member said that "JP Morgan, with its proposal, confesses its own responsibilities and, in essence, acknowledges the mega-scandal and the scam set up with structured bonds of the public sector".

Synaspismos cadre Panayiotis Lafazanis said it was imperative that all so-called "structured" bonds be immediately recalled, with a return of monies paid by the social insurance funds "in full, and with interest".

Lafazanis further called for the establishment of a parliamentary fact-finding commission on the issue.

Caption: ANA-MPA file photo of Roussopolos.

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