Greece surrenders itself to creditors and bondholders

Greece surrenders its gold and itself to creditors in the new deal

Commodity Online,

23 February, 2012

NEW YORK (Commodity Online): Though Greece finally reached a debt deal last week, the fine print suggest that the country may have surrendered itself to creditors and bondholders.

As per the new agreement, Greece's lenders will have the right to seize the country's gold reserves in the event of any default. Greek gold reserves are estimated to be more than 100 tonnes. Also hard hitting to its national interests is the fact that all future issues of Greek bonds will be governed in English and Luxembourg courts- conditions more favourable to the bondholders.

Credit rating agencies like S&P and Fitch had already warned that Greece would eventually default. Fitch had even quoted March 20, 2012 as the date when Greece will default on the payments. And if it does so, then as per the new deal it may have to part away from its gold amongst other things