Wednesday May 27, 2015 Search
Weather | Athens
14o C
09o 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)  
Athens, creditors offer conflicting views on negotiations
Opposition presses PM over deal with lenders
Stamati makes sixth appeal to be granted house arrest
Athens responds after Albanian PM calls for new talks on maritime borders
ECB tells Athens to reach a deal
The European Central Bank again issued a terse message to the Greek government on Wednesday by not extending the limit on the cash made available to Greek lenders through the emergency liqui...
Canada´s Oliver hopeful of solution in Greek crisis talks
Canadian Finance Minister Joe Oliver said on Wednesday he did not think “anything inadvertent” would happen to derail progress towards a solution on the Greek crisis. “People are looking at ...
Inside Business
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
Inside Sports
COMMENTARY
Romantic notions meet reality
Before the elections, there was a considerable number of people who totally disagreed with the ideas and program put forward by SYRIZA, but they expected that the leftist party would, at lea...
EDITORIAL
Solving the Gordian Knot
The leftist-led government, as well as the country, have both been seriously damaged and exposed to risk from the evident indecision and repeated contradictions dogging the ongoing negotiati...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. ECB tells Athens to reach a deal
2. Athens, creditors offer conflicting views on negotiations
3. Opposition presses PM over deal with lenders
4. Canada´s Oliver hopeful of solution in Greek crisis talks
5. Piraeus Bank reports loss of 69 mln euros in Q1
6. Stamati makes sixth appeal to be granted house arrest
more news
Today
This Week
1. Some 300 mln left banks on Tuesday
2. Romantic notions meet reality
3. Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
4. The G-7's problem: Can the world deal with a Greek default?
5. Solving the Gordian Knot
6. FYROM PM blames Greece for name impasse
Today
This Week
1. Conspiracy madness
2. National self-awareness put to the test
3. Albanian demarche raises concerns about possible territorial claims over Greece
4. Hotel contracts with a ‘Greek default clause’
5. Neither Grexit nor a dual currency will solve Greece’s problems
6. Merkel said to plan address for Greece if deal reached
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.