Thread: Six universities at risk of closure after bond swap

Six universities at risk of closure after bond swap

28 Mar 2012


The University of Athens: Rectors say that universities are left with only 33m euros of the 120m euros that they had deposited with the Bank of Greece for their operating expenses (Eurokinissi)

Six of the country's universities say they face immediate closure after the recent bondswap reduced their assets to zero.

An emergency meeting of university rectors on Tuesday heard that only 33m euros remained of 120m euros that 17 Greek universities had deposited with the Bank of Greece for their operating expenses, while six university accounts were now completely empty meaning they would soon be unable to stay open.

Their accounts hit rock bottom following Bank of Greece's conversion of their funds into state bonds, which were subsequently subjected to a haircut in the private-sector involvement (PSI) bond-swap deal in March.

The rectors decided to set up a legal committee in an attempt to reclaim the money lost.

In a meeting with the education minister, Yiorogs Babiniotis, the rectors called for emergency funding for the tertiary education sector.

Babiniotis said he understood the problem the universities faced and pledged to do everything in his power to secure, even partially, the continued operation of the universities.

He said he had raised the issue earlier in a meeting with the prime minister. (Athens News, AMNA)

Six universities at risk of closure after bond swap | Athens News