Friday August 29, 2014 Search
Weather | Athens
31o C
24o 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 leaders’s summit on Thursday, of Greece’s 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)  
Exam results spell trouble for some universities
Police names suspects in 400,000-euro heist
Rector takeover marred by protest
Greek PM reaches out to foreign officials ahead of crucial EU summit, troika talks
Foreclosures threat pushed back
An agreed foreclosure protection period currently granted to first-home buyers unable to settle overdue tax amounts will be conditionally extended beyond the end of the current year, when it...
Athens rental rates tumble
Reflecting the overall shrunken state of the Greek economy, rents for small, aging Athenian apartments of up to 60 square meters have fallen by a total of 50 percent since the recession star...
Inside Business
SOCCER
Panathinaikos, PAOK and Asteras Tripolis through to Europa League group stage
There was a triple success for Greek soccer on Thursday as PAOK, Panathinaikos and Asteras Tripolis made it through to the Europa League group stage. PAOK had a challenging task after a 1-0 ...
SOCCER
Olympiakos drawn against Spanish, Italian and Swedish champions in CL
Olympiakos will face the champions of Spain, Italy and Sweden in the group stages of Europe's top soccer tournament, the Champions League. Thursday's draw in Monaco was not particularly kind...
Inside Sports
COMMENTARY
The Lotus-Eaters
Turkey, a country branded by some as undemocratic and maladjusted by European standards, recently elected a new president – Recep Tayyip Erdogan – in a vote that was transparent and with a c...
EDITORIAL
A good start for culture
It took decades for a decision as obvious as keeping Greece’s most popular museums and archaeological sites open all day and all week to be reached and acted on, and now we are beginning to ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Panathinaikos, PAOK and Asteras Tripolis through to Europa League group stage
2. Foreclosures threat pushed back
3. Exam results spell trouble for some universities
4. Police names suspects in 400,000-euro heist
5. Athens rental rates tumble
6. Transforming OPAP buys top-up firm
more news
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. Hardouvelis, ECB executive discuss bank program, stress tests
3. Greece to relaunch tender for mutual horesebetting license
4. Venizelos invites Simitis and Papandreou to PASOK 40th anniversary event
5. Bad debt provisions hit Greece's PPC first half net profit
6. EU's Frontex to take lead from Italy in Mediterranean immigration crisis
Today
This Week
1. Brussels warns Greece over plans to allow construction near Korinos beach
2. Merkel cites euro’s ‘construction flaws’ as economy sputters
3. Attack on gay couple in Athens leaves one man needing surgery
4. Purification rituals
5. Second man held over double murder in Mani
6. The battle against progress
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.