Tuesday March 3, 2015 Search
Weather | Athens
20o C
11o 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)  
Man who killed three family members hangs himself in Thessaloniki jail
Convicted Conspiracy of the Cells Fire member to face magistrate
Greek government searches for funds amid fresh speculation about third bailout
Ankara backpedals on Aegean military drill
Varoufakis to make six reform proposals at Monday´s Eurogroup
Finance Minister Yanis Varoufakis says he will present proposals for six reforms at Monday’s Eurogroup. “I will go with a file of six reform proposals so we can discuss which ones can be imp...
Investor survey shows 38 pct chance of eurozone break-up in 12 months
Investor expectations of the euro zone breaking apart have risen to their highest level in two years, a survey showed on Tuesday, even after Greece agreed a financial lifeline with its euro ...
Inside Business
BASKETBALL
Waters turns from zero to hero for Kolossos Rhodes
For 40 minutes he was a real disappointment for his coach, Aris Lykoyiannis. His shooting rate was a miserable 1 in 10 two-point shots and he had made no three-pointers. On top of that he co...
SOCCER
Super League clubs promise to combat violence, again
The Super League clubs agreed on Monday to a blueprint of proposals for combatting violence in soccer grounds and will present it to Deputy Minister Stavros Kontonis to ask for the top fligh...
Inside Sports
COMMENTARY
The Greek tax drama
Numbers alone can never interpret reality, not even a strictly financial one. Besides, the art of creative accounting has a number of fans in this country, many more, for the time being, tha...
EDITORIAL
Mixed signals
Ankara finally realized, perhaps also thanks to international pressure, that its latest gesture was too provocative by any measure. Meanwhile, however, it was welcome to see the reflexes of ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Varoufakis to make six reform proposals at Monday´s Eurogroup
2. Man who killed three family members hangs himself in Thessaloniki jail
3. Investor survey shows 38 pct chance of eurozone break-up in 12 months
4. Convicted Conspiracy of the Cells Fire member to face magistrate
5. Draghi’s QE moves to starting line as economic outlook brightens
6. Waters turns from zero to hero for Kolossos Rhodes
more news
Today
This Week
1. The Greek tax drama
2. Draghi’s QE moves to starting line as economic outlook brightens
3. Convicted Conspiracy of the Cells Fire member to face magistrate
4. Mixed signals
5. Investor survey shows 38 pct chance of eurozone break-up in 12 months
6. Man who killed three family members hangs himself in Thessaloniki jail
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. Spain said to lead push to hold Greece to terms as Podemos grows
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.