April 21, 2011
The US investment bank Citigroup is at the centre of an investigation by the Greek authorities into rumours that the debt-laden nation was preparing a restructuring of its debt over the Easter weekend.
Citigroup is insisting it has done nothing wrong after it emerged that an email from one of its traders prompted the inquiry.
In a statement, the Greek finance ministry revealed that it had asked public prosecutors to "investigate possible criminal conduct" after uncovering an email from within "an international investment bank".
Citigroup is adamant that it has done nothing wrong. "We are co-operating with the authorities and do not consider there to have been any wrongdoing by Citi or its employees," the bank said.
Greek bond yields jumped on Wednesday, amid growing expectations of an imminent restructuring.
Investors increasingly believe Greece will have to negotiate with its creditors and impose "haircuts" on bond-holders, meaning they will not get all of their money back, but speculation is rife about the timing of any restructuring.
The finance ministry said rumours about an Easter deal were "devoid of any substance and verge on the ridiculous" but promised to pursue the culprits with "all legal means available".
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