Find legal arguments to have ECB exempted from the PSI.

Fact 1: The European Council, at its Summit on 26 October 2011, decided to implement the
Private Sector Involvement (PSI) initiative in the prospective restructuring of Greece. The
PSI is expected to involve a 50% voluntary reduction on privately held Greek sovereign debt.

Fact 2: The Eurosystem has purchased GGBs (Greek Government Bonds) under the
Securities Market Programme (a?SMPa?). The SMP is a monetary policy instrument, without
investment objectives. However, there are other GGBs that were bought by the Eurosystem
for investment purposes (i.e. not under the SMP). The ECB holds approximately EUR40
billion in nominal value of GGBs governed by Greek law (approximately 90%) and English
law (approximately 10%). In addition, the Eurosystem NCBs also hold a percentage of the
GGBs. These bonds were purchased on the secondary market at prices prevailing at the time,
i.e. at a discount.
A The ECBas position regarding the PSI is controversial and might have a negative impact on other bondholdersa willingness to participate. In this context, the ECB seeks your opinion to ascertain whether: there are any legal arguments to have their debt exempted from the PSI.

The following documents are provided for additional reference:

1. The European Councilas Summit Conclusions dated 26 October 2011.

2. Slides from the ECB explaining the role and functions of the Eurosystem, ECB and NCBs.