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EU court rejects investors' bid for ECB compensation over Greek debt overhaul

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EU court rejects investors' bid for ECB compensation over Greek debt overhaul

A European court has dismissed a bid by some private holders of sovereign Greek bonds to get compensation from the European Central Bank for the losses they were forced to take as a result of Greece's public debt restructuring in 2012.

Some private investors, who did not consent to but were still compelled to participate in Greece's debt swap, had sought compensation from the ECB for its non-objection to the Greek law that authorized the debt reduction.

But in a ruling published May 23, the EU General Court said there was no evidence that the ECB committed a "sufficiently serious breach" of EU rules when it advised Greece on that law.

The court also said the debt restructuring infringed the property rights of the investors seeking compensation, but such infringement was not "disproportionate and intolerable."

The debt restructuring was "in line with the public interest objective of ensuring the stability of the Euro-zone banking system as a whole," the court added.