Thursday October 23, 2014 Search
Weather | Athens
22o C
16o 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)  
Cyprus president to sit out EU summit due to high blood pressure
Strong winds hamper sea travel
Cyprus seeks EU response over Turkey´s EEZ violation
Thirteen indicted for inmate torture
TBEX brings together 800 travel bloggers in Athens
Over 800 travel bloggers and writers were expected to meet in Athens on Thursday, the first day of the TBEX Europe 2014 conference, an annual gathering of travel industry professionals. Besi...
Athens weighs its LNG and CNG options
Energy Minister Yiannis Maniatis met on Wednesday with officials from six leading shipping companies in the liquefied natural gas (LNG) sector, as he is weighing the possibility of Greece as...
Inside Business
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Defusing a crisis
The crisis in Cyprus is escalating rapidly and defusing it is an extremely delicate and complicated procedure that will inevitably lead to losses for the weakest of the two sides. The course...
EDITORIAL
PM needs to step up
The public perception of the government is anything but good right now. The coalition is projecting an image of discord and constant disputes show that key ministers are unable to stay on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cyprus president to sit out EU summit due to high blood pressure
2. Strong winds hamper sea travel
3. TBEX brings together 800 travel bloggers in Athens
4. Roberto´s heroics make Kasami´s goal count
5. Athens weighs its LNG and CNG options
6. Greece ranks among global leaders in tourism growth
more news
Today
This Week
1. TBEX brings together 800 travel bloggers in Athens
2. Strong winds hamper sea travel
3. Cyprus president to sit out EU summit due to high blood pressure
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. EU’s Juncker wins Commission-team approval with investment vow
Today
This Week
1. Coalition shooting itself in the foot
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Greece’s closed society is central to its current malaise
4. The past, present and future of the Greek debt crisis
5. Greece must stick to reforms, says Schaeuble
6. At least 11 banks to fail European stress tests, three in Greece, report says
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.