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BNP Paribas is a major holder of Greek bonds
March 8, 2012 is the final day for international banks to sign up for Greek bond swap offer (PSI mechanism).
The following three days, responses from investors concerning the bond swap offer are processed, until March 11, when the actual swapping of Greek bonds for new, longer-dated securities with a lower coupon takes place.
Eurogroup meeting of February 20 decided a further haircut of Greek bonds reaching a 53.5% cut on the nominal value of private sector holders' bonds. PSI is financed by the second greek bailout package of 130 billion euros. The vast majority of the funds in bailout will be used to finance the bond swap and ensure Greece's banking system remains stable. Another 30 billion euros will go to "sweeteners" to get the private sector to sign up to the swap, 23 billion will go to recapitalize Greek banks.