Brussels, 12/03/2014 (Agence Europe) - Every cloud has a silver lining. In a report on profiting from the crisis, two organisations - Transnational Institute and Corporate Europe Observatory - explain how hedge funds are using international investment agreements to make money from measures taken in response to the economic crisis by countries that they are dragging before the courts, like Cyprus, Greece and Spain. Hedge funds are demanding €1.7 billion from these countries.
Greece is being taken to court by two non-Greek holders of Greek bonds - Postova Bank of Slovakia and Istro Kapital of Cyprus - over the private sector writedown of the Greek debt in 2012, which the two foreign bodies feels unfairly penalised them. The Slovak bank bought Greek bonds on the cheap and was offered a highly satisfactory rate for them, but is trying to get even more by taking advantage of treaties between Greece and Slovakia. In Cyprus, a private Greek investment company - Marfin Investment Group - is demanding €823 million in compensation for the restructuring of Cypriot banks. Various international companies are demanding compensation from Spain for reductions in subsidies for renewable energy. (EL)