Small bondholders who saw their life-savings disappear overnight in the PSI restructuring of Greek debt interrupted a speech by former Prime Minister Lucas Papademos earlier today in the Athens Megaron Mousikis concert hall during a conference about banking and monetary policy.
During and after Mr Papademos’s speech, small bondholders interrupted, holding up newspaper headlines about the suicides of small bondholders and shouting at Mr Papademos. The former Prime Minister refused to answer their accusations, claiming that the conference was about a different issue.
Mr Papademos was the Prime Minister who oversaw the PSI (Private Sector Involvement) deal. In total about 15,000 families had invested their money in Greek bonds. These lost about 75% of their value in the March 2012 haircut in a deal struck by then Finance Minister Evangelos Venizelos. While the banks that also saw significant losses in the debt restructuring have since been recapitalised, there have been no moves as yet to compensate the small bondholders. This despite Antonis Samaras having pledged to do so in the run up to the 2012 elections.
After the disruption the conference continues as normal with the speech of the vice president of the European Central Bank, V. Costancio.
Source: Naftemporiki via To Pontiki