the small print

January 11, 2010

It appears that the IMF will send a team to Greece in order to offer ‘technical assistance’. I am as clueless as you are on what ‘technical assistance’ actually means, but everyone in Greece is forcefully repeating that it does not mean ‘money’.

Greek bond description

I noticed the small print in the screenshot above, which describes a bond issued by Greece which is denominated in Yen (and is held mostly by a Japanese syndicate)

If issuer loses IMF membership or use of IMF funds, majority of hldrs (sic) may request issuer to call

I was not sure how to interpret that statement. Does it mean that using IMF funds constitutes an event of default, or that losing the potential use of IMF funds is actually the default event? If the former is the case, the Greek government is right to steer clear of any note with the IMF stamp on it. But I suspect it means the former, which is rather unlikely as even Zimbabwe remains an IMF member to date.

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