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EU high court rejects compensation bid on Greek bond losses

May 23, 2019

ATHENS, Greece (AP) — An EU high court has rejected a bid for compensation from the European Central Bank by some private owners of Greek bonds who suffered losses at the height of Greece’s debt crisis seven years ago.

Near-bankrupt in 2012, Greece executed the biggest debt restructuring ever, erasing 105 billion euros owed to private creditors who mostly consented. The same terms were imposed on the rest, some of whom launched the lawsuit.

The General Court of the European Union found that those investors suffered an infringement of their property rights, but not one that was “disproportionate and intolerable.”

It said Thursday this was in line with public interest.

The Luxembourg-based court said there wasn’t evidence the ECB, which advised Greece on the deal, committed “a sufficiently serious breach” of European Union law.

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