GREECE: Insurance sector has stopped investing in state bonds since incurring huge losses

7 September 2012 —
The insurance sector has stopped investing in state bonds since incurring huge losses as a result of the private sector involvement (PSI) in the Greek debt swap earlier this year.

Insurance companies' investment in state bonds has dropped to under 1 billion euros, from the 5 billion that was in their portfolios before the debt crisis came to a head.

The most recent data from the firms show that the assets of the insurance sector's investment portfolio in Greece amount to 13.8 billion euros, with 950 million euros in Greek state bonds. The latter are the bonds that the insurance firms received in the context of their involvement in the Greek debt restructuring program, while they also have 450 million euros' worth of bonds from the European Financial Stability Facility.

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GREECE: Insurance sector has stopped investing in state bonds since incurring huge losses
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