Saturday November 1, 2014 Search
Weather | Athens
18o C
13o 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)  
Ministry swap halts talk of reshuffle as reforms eyed
Turkish-Greek cooperation in Aegean helps stem flow of migrants
Holocaust memorial in Athens vandalized
Turkey raises tensions, insisting on keeping vessel off Cyprus
Disposable income of households fell 10.3 pct in one year
The reduction of Greek households’ disposable incomes in 2013 compared with 2012 amounted to a total of 14 billion euros, the biggest since the start of the crisis according to data released...
Banks unhappy with bad loans bill
Bank officials are expressing serious reservations about the efficiency of the government’s bill regarding nonperforming corporate loans, arguing that the target set by the Development Minis...
Inside Business
BASKETBALL
Spanoulis played Zeus for Olympiakos against Neptunas
Captain Vassilis Spanoulis helped Olympiakos narrowly avoid an upset on Friday as it defeated Euroleague debutant Neptunas Klaipeda 85-81 in overtime in Lithuania to preserve its perfect sta...
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Spanoulis played Zeus for Olympiakos against Neptunas
2. Disposable income of households fell 10.3 pct in one year
3. Banks unhappy with bad loans bill
4. State debtor numbers grew in September
5. Reform plan among conditions
6. Ministry swap halts talk of reshuffle as reforms eyed
more news
Today
This Week
1. Archaeologists find underground vault at Amphipolis tomb
2. Man shot dead, woman injured in Vathis square attack
3. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
4. Greek retail sales rise for third month in a row
5. Germany’s 10-year bonds decline before euro-area inflation data
6. New defense minister to be appointed without reshuffle
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.