EAA confirms participation in Greek bond exchange

Düsseldorf, March 8, 2012. The Supervisory Board of Erste Abwicklungsanstalt (EAA) has approved the public-law institution’s participation in the exchange programme for Greek bonds (PSI). The Supervisory Board thus followed the proposal made by the Managing Board: “By participating in the exchange programme, we contribute to the success of the bailout package,” said Managing Board members Markus Bolder and Matthias Wargers.

In accordance with the prudence concept applicable under commercial law, EAA’s 2011 financial statements – which are currently being prepared – will show writedowns net of approx. EUR 820 million on Greek bonds and receivables. Losses resulting from the writedowns are covered by EAA’s equity capital.

The total claims of EAA towards government and private debtors in Greece originally had a nominal amount of EUR 1.2 billion and have been reduced to about EUR 1 billion through repayments and sales. Of this amount, approx. EUR 100 million relates to bank bonds, with just under EUR 900 million relating to government bonds.