Bail in clause hit Greek banks today

Euro zone finance ministers on Friday have agreed to new three year bail-out program under which Greek government will receive an assistance of €86 billion over the years of the program. However, the news has not been good especially for Greek bank bondholders.

According to a clause, senior bond holders will be part of the restructuring, which will take place later the year.

Finance ministers have agreed to Greece's request to exclude deposit holders, otherwise massive bank run would have hit the banks.

• Yields have skyrocketed today with price dropping sharply. Alpha bank's 2017 year bond yield has climbed to 38.5% from 25.4%. Similar maturity bond of Piraeus bank saw its yield climb to 88.21% from 54.78%.

As of now it is unclear, how much of the loss would be bore by senior bond holders. It would be revealed later when European Central Bank (ECB) takes up stress test and asset quality review.