Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek lenders submit all their bonds for buyback

Greece is expected by Monday to announce the successful completion of the bond buyback scheme that is key to the release of its next bailout tranche and the overall program to reduce the country’s debt to sustainable levels by the beginning of the next decade.

The deadline for holders of Greek debt to take part in the auction for their bonds expired on Friday and, according to sources, the participation of Greek banks and hedge funds was high enough for the government to meet its target of buying back more than 30 billion euros’ worth of bonds with the aim of reducing the country’s debt by some 20 billion euros.

Banking sources told Kathimerini that Greece’s four main banks – National, Eurobank, Alpha and Piraeus – submitted all their bonds, with a nominal value of 11.5 billion euros, to the buyback process. The participation of several other smaller Greek banks meant that local lenders submitted a total of 16 billion euros’ worth of bonds.

A total of 63 billion euros of Greek papers was eligible for the buyback. It was not clear last night exactly how big the contribution of hedge funds was.

Sources said local banks are hopeful that investors’ take-up of the offer from the Greek government, which had set a price range of between 30.2 and 40.1 percent of the principal amount, was big enough to allow lenders to eventually hold on to some of the bonds they submitted.

Greek banks were hoping to keep 20 to 30 percent of their bond holdings to minimize their losses. Although Greek banks will make a small short-term gain from the buyback as the bonds had been recorded in their books at a value of 30 percent, Greece’s four main lenders will lose 7.5 billion euros as a result of not holding the bonds to maturity.

Sources said that Greek bankers are hoping that the government will provide other ways of absorbing this cost, such as tax breaks. The success of the buyback should secure the release of further EU-IMF funds, with most of the next tranche going toward bank recapitalization.

ekathimerini.com , Friday December 7, 2012 (21:45)  
MPs question whether ELSTAT chief should stay
Thessaloniki metro workers see more delays
Water company eases off debtors with under 3,000 euros outstanding
Central Macedonia police arrest Serb wanted in Croatia for war crimes
Bourse benchmark drops below 1,200-point level again
The Greek bourse reverted to a downward course on Tuesday, with the Athens Exchange (ATHEX) general index ending at 1,195.96 points after shedding 1.43 percent from Monday’s 1,213.31 points....
Greek dairy company Fage wins yogurt case in Britain
Greece's leading dairy company Fage said on Tuesday it had conclusively won a long legal battle in Britain to block a US-based rival from marketing strained yogurt as 'Greek yogurt.' Britain...
Inside Business
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. MPs question whether ELSTAT chief should stay
2. Thessaloniki metro workers see more delays
3. Water company eases off debtors with under 3,000 euros outstanding
4. Central Macedonia police arrest Serb wanted in Croatia for war crimes
5. Thousands of TV viewers to lose analogue signal Friday
6. Hikers spot large fish kill at mouth of Spercheios River
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. Venizelos to meet Nimetz in Athens
4. World’s largest solar boat on Greek mission
5. Tsipras discusses Cyprus with Anastasiades in Athens
6. Municipal engineer dies in Thessaloniki following workplace accident
Today
This Week
1. Climber dies in Mount Olympus fall
2. Unequal after death
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.