Sunday March 1, 2015 Search
Weather | Athens
11o C
6o 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)  
Alleged accomplices of N17´s Xeros caught in Athens
Hellas Gold and workers react to Greek gov´t decision on plan permit
Greek ministry says teacher hirings to continue via ASEP
Women conned elderly Cretans by posing as church representatives
Greece seeks negotiations on ECB bond repayment
Greece called into question on Saturday a major debt repayment it must make to the European Central Bank this summer, after acknowledging it faces problems in meeting its obligations to inte...
Piraeus plans are coming in next few weeks
Finance Minister Yanis Varoufakis on Friday visited the installations of Piraeus Container Terminal (PCT), the local subsidiary of Cosco, with Chinese Ambassador Zou Xiaoli, in another effor...
Inside Business
BASKETBALL
Spanoulis leads Olympiakos to win over Malaga
A good second half was enough for Olympiakos to get the better of Unicaja Malaga (77-72) and score its seventh win in eight games at the second group stage of the Euroleague on Friday. Playi...
SOCCER
Ten-man Olympiakos couldn´t overcome Dnipro
Olympiakos drew 2-2 with Dnipro from Ukraine at home on Thursday, playing almost the entire second half with a man down, to bow out of the Europa League, despite facing an opponent which on ...
Inside Sports
COMMENTARY
A unionist agenda
Maybe Greece will not experience a credit event, “because it is in no one’s interest,” as Minister of State for Coordinating Government Operations Alekos Flambouraris recently assured. Maybe...
EDITORIAL
The beguiling limelight
Too much media exposure is never a good thing and there is no shortage of newcomers in politics who are beguiled by the limelight. What usually comes after this thrall of publicity is the in...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Alleged accomplices of N17´s Xeros caught in Athens
2. Hellas Gold and workers react to Greek gov´t decision on plan permit
3. Greek ministry says teacher hirings to continue via ASEP
4. Women conned elderly Cretans by posing as church representatives
5. Spain, Portugal sought to trip up gov’t, Tsipras says
6. Police nab Kavala man over homegrown cannabis
more news
Today
This Week
1. Greece seeks negotiations on ECB bond repayment
2. Spain, Portugal sought to trip up gov’t, Tsipras says
3. A unionist agenda
4. Hellas Gold and workers react to Greek gov't decision on plan permit
5. Greek ministry says teacher hirings to continue via ASEP
6. Women conned elderly Cretans by posing as church representatives
Today
This Week
1. Time for Alexis Tsipras to keep his nerve
2. Greek bailout deal faces review by euro officials next week
3. Greece says eurozone deal won time as cash bled from banks
4. The ignorance of the West about the culture of Islam
5. A fierce battle looms
6. Spain said to lead push to hold Greece to terms as Podemos grows
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.