GREEK DEBT FREE initiative: A smart way of reducing the Greek debt

GREEK DEBT FREE initiative: A smart way of reducing the Greek debt

07.11.2013 Blog

The Greek society after suffering the effects of the economic crisis, started to make its first steps in constructing the foundation of social economy. More and more actions were initiated in order to assist the Greek society in becoming more active in daily problems.

Greek Debt Free (GDF) is one of these actions. The GDF is a combination of two organizations, the GDF Inc. in USA, a non-governmental, non-profit, non-political organization with the GDF non-profit, non-political, non-governmental organization of Greece. It is though considered as one movement. Each one of these two organizations has the same goal, moral code and tries to help the Greek society. Their main goal is to encourage the civilians to take actions in order to diminish the Greek National Debt to sustainable levels. Peter Nomikos, founder operator of GDF Inc. has stated in one of his interviews that “buying and canceling bonds should be the state’s job, but government lacks financial ability. GDF strives to be a transparent platform for a citizen led buy-back of national debt. Reduce the debt and the crisis goes away, jobs come back and Greece gets back on its feet”.

GDF accepts donations in order to buy Greek national bonds in the international markets, in much lower prices than the amount of money that the Greek government has to pay. After buying these bonds the GDF cancels them in order to diminish the debt. GDF occupies volunteers that want to donate some of their time for helping the Greek society to evolve. 

The concept of GDF is revolutionary as it buys bonds in the secondary market and cancels them prior to maturity. It saves the Greek government from the need of paying these bonds in the future and also gains the bond’s interest which will be invested in buying more bonds. The press has embraced this new movement as a nice idea which is both practical and innovative. It is believed that more and more individual civilians and companies, will start to contribute for the purposes of this cause and hopefully the GDF will achieve its goal, which is firstly to turn the Greek society in an energetic one, as far as social problems are concerned, and secondly to minimize the debt in sustainable levels.   

On the 17th September 2013, GDF Inc. USA submitted to the Greek Government for cancelation Greek Government Bonds, HELLENIC FRN-PSI-2% 24 Feb 2041, with a total nominal value of 2 million euros. Future interest payments for these bonds which mature in 2041 are about 1,12 million euros. Including the principle (nominal value) of 2 million euros, the GDF cancelation saves the Greek people debt repayment of 3,12 million euros. With a Ministerial Decision, the Deputy Minister of Finance accepted the donation of Greek bonds by GDF on behalf of the Greek government and has committed to their cancelling.

More information on this initiative could be found on GDF’s website and also on youtube.