February 20, 2012
Filled Under: SCANDAL, SLIDESHOWS
Goldman Sachs has been getting plenty of heat over the currency swap it arranged for Greece, but the swap itself is not the only issue here. A new document claims that securitization also played a major role and it seems that "the special purpose vehicle (SPV) created to securitize the swap" is not the only Greek debt-concealing securitization deal undertaken by the Hellenic Republic. According to what was leaked, it seems that Greece went on a state asset-securitizing spree in a fit of mythological-named deals between 2000 and 2001. So how did the securitizations help conceal Greece's debt? They used very shady accounting tactics. In what amounted to a garage sale on a national scale, Greek officials essentially mortgaged the country's airports and highways to raise much-needed money. The arrangement they called "Aeolos" a legal entity created in 2001,helped Greece reduce the debt on its balance sheet that year. As part of the deal, Greece got cash upfront in return for pledging future landing fees at the country's airports. A similar deal in 2000 called "Ariadne" . . . devoured the revenue that the government collected from its national lottery.
The deals include:
Aeolos SA - (2001) - A 355m securitisation backed by air traffic control fees owed to Greece byairlines. The deal was managed byMorgan Stanley, Alpha Bank and EFG Eurobank,accordingto a 2001 article from EuroWeek.
Ariadne SA - (2000) - A 650m deal backed by cashflow from OPAP ² the state lotteries. Thearrangers were Morgan Stanley Dean Witter, Schroder Salomon Smith Barney and UBS,according to a 2000 story from EuroWeek.Alpha Bank and Commercial Bank were joint leads.
Atlas Securitisation SA - (2001) - That 2bn deal backed by European Commission (EC) payments under the third Community Support Framework EC-Greek development plan. This one was jointly managed by BNP Paribas, Deutsche Bank, EFG Eurobank and NBG International, according to a 2001 story from EuroWeek.
By Porta2Porta - Source scribd
Details On The "Other" Greek Debt Deals That Are Even More Scandalous
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Goldman Sachs has been getting plenty of heat over the currency swap it arranged for Greece, but the swap itself is not the only issue here. A new document claims that securitization also played a major role and it seems that "the special purpose vehicle (SPV) created to securitize the swap" is not the only Greek debt-concealing securitization deal undertaken by the Hellenic Republic. According to what was leaked, it seems that Greece went on a state asset-securitizing spree in a fit of mythological-named deals between 2000 and 2001. So how did the securitizations help conceal Greece's debt? They used very shady accounting tactics. In what amounted to a garage sale on a national scale, Greek officials essentially mortgaged the country's airports and highways to raise much-needed money. The arrangement they called "Aeolos" a legal entity created in 2001,helped Greece reduce the debt on its balance sheet that year. As part of the deal, Greece got cash upfront in return for pledging future landing fees at the country's airports. A similar deal in 2000 called "Ariadne" . . . devoured the revenue that the government collected from its national lottery.
The deals include:
Aeolos SA - (2001) - A 355m securitisation backed by air traffic control fees owed to Greece byairlines. The deal was managed byMorgan Stanley, Alpha Bank and EFG Eurobank,accordingto a 2001 article from EuroWeek.
Ariadne SA - (2000) - A 650m deal backed by cashflow from OPAP ² the state lotteries. Thearrangers were Morgan Stanley Dean Witter, Schroder Salomon Smith Barney and UBS,according to a 2000 story from EuroWeek.Alpha Bank and Commercial Bank were joint leads.
Atlas Securitisation SA - (2001) - That 2bn deal backed by European Commission (EC) payments under the third Community Support Framework EC-Greek development plan. This one was jointly managed by BNP Paribas, Deutsche Bank, EFG Eurobank and NBG International, according to a 2001 story from EuroWeek.
By Porta2Porta - Source scribd
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