Friday December 19, 2014 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)  
Parliament´s ethics panel mulls Haikalis´ bribery claims, copies video for party leaders [Update]
ND rebuffs bribery claims, says alleged mediator was adviser to Kammenos
GD´s Kasidiaris charged for recording chat with ex PM aide
Independent Greeks leader backs MP´s bribery claims, threatens to release video [Update]
Hollande suggests he and Merkel will move jointly to help Greece
Speculation about a possible overture by European leaders in support of the Greek government rose on Friday after French President Francois Hollande said he would work together with German C...
IMF postpones Cyprus loan tranche after foreclosure law
The International Monetary Fund on Thursday said it could no longer release funds to Cyprus under its bailout this week, after the euro zone government suspended a foreclosure law that was r...
Inside Business
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
BASKETBALL
Reds lose in Turkey to motivated Galatasaray
Olympiakos went down at Galatasaray 79-74 on Thursday for its second defeat in the first round of the Euroleague that ended with the Reds topping their pool with eight wins in 10 games. With...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldn’t make it up: That Sony, one of the world’s biggest film producers, would be forced to pull a comedy about the assassination of North Korea’s dictator after a ...
EDITORIAL
Oblivious to change
The world around us is undergoing many important changes while we sit around stewing in our own juices. US President Barack Obama is actually talking with Cuba’s Raul Castro, for example, bu...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Hollande suggests he and Merkel will move jointly to help Greece
2. Parliament´s ethics panel mulls Haikalis´ bribery claims, copies video for party leaders [Update]
3. ND rebuffs bribery claims, says alleged mediator was adviser to Kammenos
4. GD´s Kasidiaris charged for recording chat with ex PM aide
5. Independent Greeks leader backs MP´s bribery claims, threatens to release video [Update]
6. Ministry rebuffs reports that Amphipolis skeleton has been identified
more news
Today
This Week
1. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
2. Greek PM Samaras confronts peril putting his Greek transformation to vote
3. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
4. Independent Greeks leader backs MP's bribery claims, threatens to release video [Update]
5. Gov't spokeswoman says bribery claims 'badly-played charade,' heralds legal action if evidence not produced
6. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. High stakes
6. Europe's drama in Greece needs final act to avoid tragedy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.