Wednesday March 4, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Athens to borrow 10-14 bln to fund scheme which ‘must succeed’

Finance Minister Yannis Stournaras said on Wednesday that Greece would borrow up to 14 billion euros to fund a bond buyback scheme which creditors have said must be completed as part of efforts to reduce Greek debt and before fresh rescue loans are released next month.

“It is our patriotic duty to make the scheme succeed,” Stournaras told a press conference. “It must succeed.”

He refuted reports that the government would issue T-bills to raise the money for the scheme, saying that the funds would come from the European Financial Stability Facility. Stournaras fudged questions whether the success of the scheme was a condition for the release of 34.4 billion euros in loans next month. But he said that if the voluntary scheme fails to attract enough interest, there is a “Plan B” which he refused to elaborate on.

The new loan is on top of the 44 billion euros that eurozone and International Monetary Fund officials earmarked for Greece at a Eurogroup summit this week but it has been factored into the troika’s debt sustainability analysis, which sees Greek debt shrinking to 124 percent of gross domestic product from around 175 percent now, Stournaras said.

Early next week, Greece’s debt management agency is to reveal details of the bond buyback scheme which, according to Reuters, will be managed by Deutsche Bank and Morgan Stanley.

Of the 44 billion euros pledged to Greece, 34.4 billion is to be released by December 13 with the remaining 9.3 billion to be paid in three tranches in the first quarter of next year if Greece meets troika targets.

Of the 34.4-billion-euro tranche Greece hopes to get next month, 23.8 billion is to go to bank recapitalization and 10.6 billion to the primary deficit and state arrears. Alternate Finance Minister Christos Staikouras said a plan for the repayment of 9.3 billion euros in state arrears would be announced on Thursday. Of the total, 1.5 billion euros is to be paid out next month and the rest next year.

Stournaras said the Eurogroup deal had helped secure Greece’s position in the eurozone and its prospects for economic recovery but he noted that it is “no cause for celebration.” “Now the hard part begins.”

Meanwhile it emerged that eurozone central banks may roll over their holdings of Greek debt, which would reduce a funding gap for the 2013-16 period from 7.6 billion euros to 5.6 billion.

ekathimerini.com , Wednesday November 28, 2012 (23:59)  
Greek-Turkish diplomacy set to resume after Ankara ´mistake´
Laws separating drug dealers from users ‘not applied’
SDOE had ‘no order’ to inspect Lagarde list
Athens preparing reform proposals for Eurogroup
Four-star hotels more profitable than five-star units
Four-star hotels, such as this unit at Aghios Gordios on the Ionian island of Corfu, posted the biggest profit margins among the top three categories of hotels (three to five-star units) in ...
All personal finance data to be studied
The Finance Ministry plans to sift through mortgage and consumer loans, share holdings, bank account transactions, dividends and insurance contracts in a bid to locate undeclared incomes. He...
Inside Business
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
SOCCER
Olympiakos´s Karembeu confident UEFA on top of racism
Olympiakos strategic advisor Christian Karembeu expressed his confidence on Tuesday that UEFA are getting to grips with racism in soccer after suffering abuse during the recent Greek derby a...
Inside Sports
COMMENTARY
Greece and the four month window of opportunity
As the dust begins to settle after the Eurogroup agreement extending the loan facility to Greece by four months, it is a good moment to have a look at where we should go from here. Much has ...
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...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Four-star hotels more profitable than five-star units
2. All personal finance data to be studied
3. Fitch in new downgrade warning
4. Flambouraris: Bank boards have been told to quit
5. Talks with Brussels on reforms for cash
6. Greek-Turkish diplomacy set to resume after Ankara ´mistake´
more news
Today
This Week
1. The Greek tax drama
2. Varoufakis to make six reform proposals at Monday's Eurogroup
3. Draghi’s QE moves to starting line as economic outlook brightens
4. Greece approved as recipient of EBRD funding through 2020
5. Convicted Conspiracy of the Cells Fire member to face magistrate
6. Investor survey shows 38 pct chance of eurozone break-up in 12 months
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. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
Advertiser Link
“AMF” PROJECT FINAL CONFERENCE-REGIONAL UNIT OF THESPROTIA
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.