Thursday December 18, 2014 Search
Weather | Athens
17o C
10o 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 that’s 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 nation’s 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 Greece’s bailout program. IMF Managing Director Christine Lagarde said after the euro-area finance ministers’ 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 country’s pension funds hold 8 billion euros.

Finance ministers plan to make a formal decision on Greece’s 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)  
Austerity curbed human rights in Greece, report says
Snap elections would lead to euro exit, says former premier
Merkel says Russia sanctions to remain unless Putin yields; Greece´s prospects ´better than two years ago´
Kammenos maintains firm position, says general election is ´one-way street´
Greek bond yields fall after ´friendly´ Schaeuble comments
Greek government bond yields fell sharply on Thursday after German Finance Minister Wolfgang Schaeuble said Athens was on the right track in terms of reforms. "If the reforms already under w...
No risk of contagion from Greek vote, Italy´s FinMin says
Italian Economy Minister Pier Carlo Padoan said on Thursday that possible fallout from Greece's political showdown would not trigger a eurozone debt crisis like the one that pushed Italy clo...
Inside Business
BASKETBALL
Pappas helps Greens overcome Aris
An impressive Nikos Pappas averted an upset by Aris and ensured Panathinaikos retained its perfect record on Tuesday, one day after Olympiakos thrashed Panionios at Nea Smyrni for the Basket...
´Wee Jay´ and idol Georgios Samaras receive Greek sports journalists´ award at Athens gala
A 10-year-old Irish fan of Greek striker Georgios Samaras was in Athens on Monday at the invitation of the Greek Sports Journalists' Association, which honored outstanding achievements in sp...
Inside Sports
COMMENTARY
Europe´s drama in Greece needs final act to avoid tragedy
Judging from Wednesday's vote in the Greek parliament, Prime Minister Antonis Samaras may not get the mandate he wants to keep economic austerity measures in place and avoid defaulting on th...
COMMENTARY
A pointless battle
The public closely watched the first act in the three-part drama of Parliament’s election of a new president yesterday. The result was below the expectations of the New Democracy-PASOK coali...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek bond yields fall after ´friendly´ Schaeuble comments
2. No risk of contagion from Greek vote, Italy´s FinMin says
3. Austerity curbed human rights in Greece, report says
4. German finmin says Greece in better shape than expected
5. What SYRIZA says about Greece’s economy, its debt and the euro
6. Unemployment drops to 25.5 pct in Q3
more news
Today
This Week
1. Europe's drama in Greece needs final act to avoid tragedy
2. Election looms as Samaras fails to win vote for president
3. Kammenos maintains firm position, says general election is 'one-way street'
4. Eurozone bond yields fall as 'patient' Fed pleases investors
5. Merkel says Russia sanctions to remain unless Putin yields; Greece's prospects 'better than two years ago'
6. What SYRIZA says about Greece’s economy, its debt and the euro
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. East Europe scrambles for energy after Putin kills South Stream
6. Anarchist Nikos Romanos ends hunger strike
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.