Tuesday September 30, 2014 Search
Weather | Athens
26o C
17o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece to spend 10 mln euros in bond buyback offer via Dutch auction

Greek Finance Minister Yannis Stournaras is due in Brussels on Monday to present his eurozone counterparts with the details of the bond buyback scheme in the fourth Eurogroup meeting in as many weeks.

Greece offered to spend 10 billion euros ($13 billion) buying back bonds issued earlier this year as the nation attempts to cut a debt load that may threaten future international aid payments.

Greece invited holders of bonds to tender their securities in a so-called modified Dutch auction, the Athens-based Public Debt Management Agency said in a statement on Monday on its website. PDMA offered an average maximum purchase price for the bonds maturing from 2023 to 2042 of 34.1 percent. The offer runs to 5 p.m. London time on December 7.

Success of the buyback is key to releasing aid thatís been frozen since June. The offer is part of a package of measures approved by euro-area finance ministers last week that aims to cut the nationís debt to 124 percent of gross domestic product in 2020 from the 190 percent it was projected to reach in 2014 without the measures.

The IMF has set the 2020 debt-reduction target as a condition for continuing to fund a third of Greeceís bailout program. IMF Managing Director Christine Lagarde said after the euro-area finance ministersí meeting that the fund will examine the results of the buyback before deciding whether to approve disbursement of additional aid.

The buyback accounts for 11 percentage points, or more than half of the 20 percentage points of the planned drop.

While Greece has gotten pledges for 240 billion euros of aid, the funds have been frozen since June as the government tries to get its bailout program back on track after it was disrupted by two elections and a deepening recession.

The buyback will target 62 billion euros of new bonds issued after the debt swap, according to a November 27 draft of a report by the so-called troika comprising the European Commission, the European Central Bank and the International Monetary Fund.

Greek banks hold 15 billion euros of the new bonds, while the countryís pension funds hold 8 billion euros.

Finance ministers plan to make a formal decision on Greeceís 34.4 billion-euro disbursement by December 13. Deutsche Bank AG and Morgan Stanley International were appointed to manage the buyback, according to the PDMA. [Bloomberg]

ekathimerini.com , Monday December 3, 2012 (11:02)  
Would-be commissioner Avramopoulos sets out priorities on migration
Money ring sent†4.5 mln abroad
Troika talks begin amid coalition tensions
Halandri Roma shacks to be demolished
NBG Pangaea eyes listing on foreign bourse, huge portfolio
Leading Greek property investment company NBG Pangaea is getting ready to spread its wings as it eyes the creation of a major portfolio worth up to 4 billion euros to be listed not only on t...
Out-of-control unpaid bills bring PPC to its knees
Public Power Corporation (PPC) is heading for a financial blackout as unpaid electricity bills are growing at an annual rate of 30 percent, having reached 1.7 billion euros at the end of Jul...
Inside Business
SOCCER
All team sports suspended next weekend in memory of dead fan
The government announced on Monday the suspension of all team sports events in Greece scheduled for next weekend, October 4 and 5, in the memory of the Ethnikos Piraeus fan who died a few ho...
SOCCER
Karamanos punishes Michel for deeming him surplus
Atromitos forced Olympiakosís first loss this season in all competitions on Saturday to allow PAOK to go alone on top of the Super League table on Sunday. Odds-on title favorite Olympiakos l...
Inside Sports
COMMENTARY
Next-day jitters
It is usual for Greek governments, whether one-party or coalitions (which are normally loath to actually work together), to claim that their only real challenge is dealing with the countryís...
EDITORIAL
No sweet debt deals
The lionís share of Greeceís debt is held by European Union member states and the International Monetary Fund. A writedown of the European part of the debt would require the approval of the ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. NBG Pangaea eyes listing on foreign bourse, huge portfolio
2. Out-of-control unpaid bills bring PPC to its knees
3. Banks feel optimistic ahead of stress test results
4. S&P upgrades OTEís credit rating and revises outlook
5. Athens tourism fuels hotel occupancy
6. Would-be commissioner Avramopoulos sets out priorities on migration
more news
Today
This Week
1. Next-day jitters
2. Roma camp off Mesogeion Avenue set for demolition amid reactions
3. No sweet debt deals
4. Commissioner-designate Avramopoulos to face three-hour interview on EU's migration portfolio
5. Greek unemployment dips to 27 pct in June, but still highest in EU
6. Roma camp evacuation postponed; flow resumes on Mesogeion Avenue
Today
This Week
1. Alexander the Great's tomb not at Amphipolis, says Culture Minister
2. Greece may opt for unusual president to avoid snap polls, Venizelos says
3. Woman allegedly buried alive by accident in northern Greece
4. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
5. Venizelos denies jihadis are being trained in Greece
6. Should you bet with Kissinger on where the world is heading?
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.