A major legal development for the management of Greek public debt has taken place in London, as the High Court of England fully vindicated Greece in the case concerning GDP-linked securities (GDP warrants), which were issued in 2012 as part of the Greek debt restructuring (PSI). The case involved securities with a total nominal value exceeding €62 billion, making it one of the largest issuances of GDP-linked instruments by a sovereign state.
In its ruling, Judge Bright confirmed both the legality of Greece’s exercise of its buyback right and the methodology used to determine the repurchase price. Specifically, the court found that Greece validly exercised its contractual right under clause 6.1 of the terms of issuance, and that the buyback price of €252.28 per 1,000 warrants was correctly calculated based on data from the Electronic Secondary Securities Market (HDAT) of the Bank of Greece over the relevant 30 trading days.
The dispute arose after investors challenged both the legality of the buyback notice and the valuation method. They argued that the price should have been determined using alternative market sources, but the court rejected these claims, ruling that Greece correctly applied the contractual framework and procedures.
Officials in the finance ministry view the ruling as highly significant, as it removes a potential source of uncertainty surrounding Greek debt and strengthens the country’s credibility in international markets. Government sources note that the decision comes at a time when Greece is accelerating efforts to reduce public debt through early repayments, active debt portfolio management, and measures aimed at lowering long-term servicing costs.
Particular importance is also placed on the court’s acceptance of the “declaratory judgment” as the most effective way to resolve the dispute, avoiding the risk of multiple or conflicting rulings on the same financial instrument. According to the judgment, this approach provides greater legal certainty for both states and investors in international markets.
Dimitris Tsakonas, head of the Public Debt Management Agency (PDMA), welcomed the clarity provided by the court, noting that the decision reaffirms Greece’s commitment to acting in good faith and in line with the applicable contractual framework.
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