In an interview with “Business Stories,” Paul Kazarian, a U.S. investor of Armenian descent and Founder, Chairman and CEO of Japonica Partners, an entrepreneurial investment firm, stated that his company invested in GGB because they found a diamond in the rough. 

“As Greece joins the western world with international accounting standards, it will have to tools to create a success story like no other,” underlined Mr. Kazarian, who estimates that the Greek public debt is below 60%.
The U.S. investor also noted that “whichever Greece leadership effectively communicates that Greece has one-third the debt of its peers, they will earn the respect of the Greece voters as interest rates will be cut in half and job creation will be jump started adding 200,000 to 400,000 jobs in the next 24 months.”

Mr. Kazarian, who has invested more than 4-5 billion in GGB, notes two more advantages of the Greek debt:

■ Greece has a huge competitive advantage with a net debt to GDP ratio that is one-third (1/3) of its credit peers when measured under modern international accounting standards.
■ Greece interest payments as a percentage of revenue are also one-third (1/3) of its credit peers.

How the 57% penalty is going to reduced
Japonica Partners bought the first Greek bonds at 11.40 cents following the passing of Paul Kazarian’s father. The U.S. investor saw the Greek Bonds as a new challenge in his life.
Apart from a massive campaign which he has undertaken himself in favor of Greek bonds, he has spent millions on auditing firms in an effort to convince them of his idea. “Applying international accounting standards to Greece was very hard work, but now with a 53-page Expert’s Opinion by Big Four accounting firms, the exact real debt number as of December 31, 2013 is now known,” he told “Business Stories. ”
Mr. Kazarian who’s been accused of having a vested interest, being one of the most significant remaining private creditors of the Greek government, explains that “the ECB’s 57% penalty will be reduced imminently,” adding that “soon one or more Greece political leadership will join the western world and support adopting internal accounting standards. ”
“These actions will immediately lower borrowing costs, increase lending, and boost investments, jumpstarting economic growth and job creation,” the U.S. investor underlined and predicted that “whichever Greece leadership effectively communicates that Greece has one-third the debt of its peers, they will earn the respect of the Greece voters as interest rates will be cut in half and job creation will be jump started adding 200,000 to 400,000 jobs in the next 24 months.”

“Wait for public announcements”

With assets under management of more than 10 bn. Euros, Japonica is not only interested in Greek bonds. When asked on the issue, Mr. Kazarian’s laconic reply was “Best to wait for public announcements,” leaving open the possibility to buy out Greek businesses.
It is logical to assume that Japonica will go after companies with investments and significant debt reduction. Mr. Kazarian takes into account in his calculations additional indices, in an effort to show that Greece’s debt is more sustainable than it appears at first glance.
For example, the average remaining period to maturity of government bonds, after the implementation of the new accounting standards, is 19 years, while in Ireland it’s 11 years, in Portugal 8 years and in Italy and Spain 6 years. Moreover, only 15% of the debt of Athens expires by mid 2016. Ireland has the lowest rate at 9%, but Portugal stands at 24%, Italy at 29% and Spain at 36%.

Who is Paul Kazarian
In 1987, Paul Kazarian was an investment banker at Goldman Sachs and his clients included businessmen who were included in the multimillionaires’ Fortune 100-500 list.
From 1990 to 1993, Mr. Kazarian was Chairman and CEO of Sunbeam-Oster during its rejuvenation from Allegheny International. Funds under management are calculated over 10 bn. Euros. He has established two non-profit foundations whose charitable missions include healthcare, education, and technology: Τhe Charles and Agnes Kazarian and Κate Foundation.