Sunday April 19, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Buyback paves way for tranche

 Greece expected to announce success of debt reduction scheme, which will prompt release of next installment

Greece is expected to announce Monday the successful execution of its bond buyback scheme thanks to interest from hedge funds and local banks, which will allow Athens to reduce its debt by about 20 billion euros and secure the release of its next tranche of funding from the eurozone and International Monetary Fund.

Finance Ministry sources said on Saturday that the target of collecting about 30 billion euros worth of offers for the buyback had been achieved. It is thought that hedge funds offered about 15 to 16 billion euros of Greek paper, while local banks will contribute up to 16 billion euros.

This would allow Greece to spend about 10 billion euros to buy back 30 billion euros worth of bonds, reducing its debt by 20 billion.

Despite the fact the deadline for the auction, which had set a price range of between 30.2 and 40.1 percent of the principal amount, was on Friday evening, there were no final results on Saturday. This was because there were offers at various prices for 20 different types of bonds, which meant officials had to work out which combination would achieve the biggest debt reduction.

Greek banks were hoping that there would be a big enough participation from foreign hedge funds to allow them to hold on to some of their Greek bonds, thereby preventing further losses in the future when the paper reaches maturity. If need be, Greek banks will take part with all the bonds they hold [estimated at 15 billion euros], one local banking source told Kathimerini.

The successful completion of the buyback would clear the way for the eurozone and the IMF to allow the disbursement, following a Eurogroup and EU leaderss summit on Thursday, of Greeces next bailout tranche of 34.4 billion euros.

This would leave the government with the task of voting through Parliament the new tax code it has prepared and passing legislative acts for some of the structural reforms approved earlier this month in order to complete its bailout commitments for this year.

It will have to meet specific fiscal targets at the beginning of next year to secure the release of another 9.3 billion euros of loans from the EU and IMF.

ekathimerini.com , Saturday December 8, 2012 (17:53)  
Panousis skeptical about law allowing early prison release
Spike in Syrians seeking asylum in Greece
Coalition ponders next move as talks with lenders resume
Potami not seeking cooperation with other parties, says leader
Russia denies German report it is ready to sign gas deal with Greece
Russia denied on Saturday a German media report suggesting that it could sign a gas pipeline deal with Greece as early as Tuesday which could bring up to five billion euros into Athens' depl...
Greece bailout plan still lacking, ECB chief Mario Draghi says
Greece needs to urgently do much more to present an acceptable plan to gain further EU financing, European Central Bank chief Mario Draghi says. With the clock ticking on Greek negotiations ...
Inside Business
BASKETBALL
Triumph for Olympiakos at Barcelona
Olympiakos produced its best away performance so far this season to defeat host Barcelona 76-63 on Friday and snatch the home advantage in the Euroleague play-offs. The Reds have now tied th...
BASKETBALL
Another heavy loss for improved Panathinaikos in Moscow
Panathinaikos raised its performance since Tuesday but still suffered a 20-point loss at CSKA Moscow on Thursday to find itself trailing 2-0 after Game 2 of the Euroleague play-offs. Having ...
Inside Sports
COMMENTARY
The price of compromise
The representatives of the middle-class political world made plenty of compromises over the years and now we are paying the price. The current governments appointment of failed politicos, u...
EDITORIAL
Premiers choice
Prime Minister Alexis Tsipras was not elected by the 4 percent that has traditionally formed the hard core of SYRIZA supporters. Greeks may be desperate and exhausted but they still have the...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Russia denies German report it is ready to sign gas deal with Greece
2. Greece bailout plan still lacking, ECB chief Mario Draghi says
3. Panousis skeptical about law allowing early prison release
4. Spike in Syrians seeking asylum in Greece
5. Coalition ponders next move as talks with lenders resume
6. Potami not seeking cooperation with other parties, says leader
more news
Today
This Week
1. Coalition ponders next move as talks with lenders resume
2. Spike in Syrians seeking asylum in Greece
3. Potami not seeking cooperation with other parties, says leader
4. Panousis skeptical about law allowing early prison release
5. Greece bailout plan still lacking, ECB chief Mario Draghi says
6. The price of compromise
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Greek finance ministry hits back at German newspaper report
3. Time to get serious
4. 'Civil war' brewing over disputed Greek goldmine
5. Putting off payments led to Q1 budget primary surplus
6. In the shadow of Greek prison, locals dread Golden Dawn trial
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.