The case centered on financial instruments known as GDP warrants, which entitled bondholders to additional payments if the Greek economy outperformed certain growth targets. In 2024, the Greek government moved to exercise its right to repurchase all outstanding warrants due to mature in 2042, offering investors slightly more than €0.25 per euro of face value. Greece ultimately spent around €155 million to complete the buyback.
A group of investors, represented by international law firm White & Case, challenged the transaction in the UK courts, arguing that Greece had failed to properly exercise its repurchase option and had incorrectly calculated the buyback price. The investors were seeking roughly €55 million in additional payments.
The Greek government asked the London court to confirm that both the exercise of the repurchase option and the pricing methodology were lawful and binding under the terms of the securities.
Judge Robert Bright ruled in favor of Greece, concluding that the government had validly exercised its buyback rights and that the calculation of the repurchase price was correct.
The ruling is seen as an important legal and financial victory for Greece and for the country’s Public Debt Management Agency, led by Dimitris Tsakonas. The outcome removes a source of uncertainty surrounding the GDP-linked securities that emerged from one of the largest sovereign debt restructurings in modern financial history.
