Monday Jan 26, 2015 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece completes buyback, looks to next loan tranche

Greece completed its bond buyback program on Tuesday, accepting tenders for 31.8 billion euros’ worth of government paper and clearing the way for the disbursement of the country’s next, long-awaited bailout tranche.

The extended deadline for bondholders to take part expired at 2 p.m. Greek time, by when the target had been met, largely due to an added contribution from local banks. However, several unresolved issues remain.

Greece is borrowing 10 billion euros to execute the buyback, with the aim of reducing its public debt by 21.1 billion euros. The average offer to buy back the bonds 33.8 percent of the principal amount, which means that Greece needs to spend 11.2 billion euros in total. It is not clear where the extra 1.2 billion euros will come from.

Greece’s lenders had estimated that the country’s debt would be reduced by 11 percent but in fact the difference will be less than 10, so eurozone finance ministers discussed during a teleconference on Tuesday night how to reduce it from 126.6 percent of GDP to 124 percent, which the International Monetary Fund had set as a benchmark in order to continue participating in the Greek program.

The issue will be discussed further at Thursday’s Eurogroup meeting in Brussels.

There was no official statement as Athens is expected to make an official announcement about the scheme on Wednesday morning, but a European official told Bloomberg that eurozone finance ministers concluded there were no insurmountable obstacles to the next loan installment, which is worth 34.4 billion euros.

Finance Minister Yannis Stournaras is also due to present Greece’s new tax code at the Eurogroup. The government had been due to submit the legislation to Parliament ahead of the talks but Kathimerini understands that the IMF has raised objections to some aspects.

The three sticking points are the tax brackets for salaried employees and pensioners, when farmers will have to keep proper accounts and how income from capital will be taxed. Stournaras is expected to discuss the issues with his eurozone counterparts on Thursday.

ekathimerini.com , Tuesday December 11, 2012 (23:24)  
SYRIZA heads for historic victory but without majority
Prison probes violent attack against N17 convict Xeros
Exit polls suggest big margin of victory for SYRIZA
Greece’s diplomatic missions ‘on hand to assist Greeks in Ukraine’
Talks with troika the main test
The left-wing SYRIZA party’s triumph in the Greek national elections sends a strong message across the eurozone that excessive austerity will have political and social repercussions if pursu...
Fiscal gap from revenues at 2.3 bln euros
With the state budget apparently already suffering revenue losses of more than 1 billion euros in the first month of the year, the new government will have to respond quickly to the major fi...
Inside Business
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakos’s 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
BASKETBALL
Tremendous Spanoulis sweeps Laboral Kutxa
A hot second half was enough for Olympiakos to undo visiting Laboral Kutxa and score its fourth win in as many games at the second round of the Euroleague on Friday. The 76-64 final score wa...
Inside Sports
FOCUS
A SYRIZA government in Greece: what it wants and what might be possible
The left-wing SYRIZA party led by Alexis Tsipras looks likely to win the Greek general election on Sunday after campaigning on a pledge to renegotiate the country’s international bailout and...
COMMENTARY
The train
If we go by the polls, SYRIZA is set to win Sunday’s election and form a government. New Democracy did not really campaign, or perhaps it did so in a way that can only be explained if the pa...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. SYRIZA heads for historic victory but without majority
2. Prison probes violent attack against N17 convict Xeros
3. Talks with troika the main test
4. Fiscal gap from revenues at 2.3 bln euros
5. Liquidity noose tightening around local lenders’ necks
6. Banks make plans for tackling impact of Swiss franc’s growth on borrowers
more news
Today
This Week
1. SYRIZA heads for historic victory but without majority
2. Greek Elections 2015 | LIVE
3. Greek Elections 2015 Results | LIVE
4. Greeks vote for reform path or defiance
5. A SYRIZA government in Greece: what it wants and what might be possible
6. Exit polls suggest big margin of victory for SYRIZA
Today
This Week
1. Greek Elections 2015 | LIVE
2. Grexit the only way out of ‘valley of tears,’ says Hans-Werner Sinn
3. Greek Elections 2015 | LIVE
4. No debt writedown or rolling back of reforms for Greece, says Finland's Stubb
5. Greeks fork out nearly 5 pct of their incomes on telecom services
6. QE exclusion a ‘de facto Grexit’
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.