Highest German court rejected lawsuit against the investor "haircut" of Greek bonds in 2012

Highest German court rejected lawsuit against the investor "haircut" of Greek bonds in 2012


The Germans bondholders, seeking to overturn the decision to "haircut" of Greek bonds in 2012, can not achieve their design by the German courts.

As transmits the agency Bloomberg, the highest German civil court (Federal Court of Justice) dismissed lawsuit was filed German investors, indicating that it has jurisdiction in the Greek government.

The haircut bond value decided by the Greek cabinet by law in 2012, the Court pointed out in post made on its website. "A State may not be subject to foreign jurisdiction would be incompatible with the principle of equal sovereignty of states," noted the judges.

This decision is negative for hundreds of German applicants, who had based their hopes on the courts of the country, notes Bloomberg. The bondholders argue that in 2012 Greece forced to exchange their bonds with new Treasuries with significantly lower nominal value.

Franz Brown, a plaintiffs' lawyer said he would appeal to the German Constitutional Court to overturn the decision. The Constitutional Court may examine appeals against any government action, whether the applicants argue that this violates the constitution, says the report.