Thursday September 18, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece weighs using $15 billion bank aid to pay down state debt

Greece may use 11 billion euros ($15.2 billion) of international aid earmarked for banks to reduce the nation’s debt, adding momentum to the government’s planned return to international bond markets.

Greece has used 25 billion euros of a 50 billion-euro European bank-rescue package to bolster its biggest lenders. Some 14 billion euros went to restructure smaller banks. The remaining 11 billion euros may not be needed should Greek banks find private investors, Finance Minister Yannis Stournaras said.

“If, at the end of the day, all capital needs that might arise are covered by the private sector, then this 11 billion can be used simply to repay debt,” Stournaras told reporters on Wednesday in Athens. He called the leftover money a “very safe buffer for the Greek banking system.”

Greece may hire banks to sell bonds this year as it weans itself off 240 billion euros in emergency aid granted since early 2010, when investors shunned the nation’s debts because of alarm over a budget deficit that was five times the European Union limit. The government plans to sell 2 billion euros of bonds by mid-year, according to three officials.

“They might start with an exchange or a tap of an existing bond,” said Lyn Graham-Taylor, a fixed-income strategist at Rabobank International in London. “For the first new issue, they’ll probably be looking at a syndication. You don’t want to take any risks of failing.”

Greece, whose debt load is close to 180 percent of gross domestic product, or about 326 billion euros, has narrowed its budget deficit as part of the terms of the rescue program. The government and EU predict that Greece will emerge in 2014 from six years of recession.

Last month, Alpha Bank SA and Piraeus Bank SA raised 2.95 billion euros in new capital from foreign investors in the latest sign Greek lenders are bouncing back from the sovereign- debt crisis. Piraeus Bank is Greece’s second-biggest lender by assets and Alpha Bank the fourth largest.

Legislation approved by the Greek parliament on March 31 includes hundreds of economic measures including changing the way banks are recapitalized.

Stournaras said on Wednesday that the goal of the bill’s banking provisions is “to maximize the use of private-sector participation in banks’ capital in order to safeguard” the unused 11 billion euros from Europe “so they can form a buffer.”

Once the European Central Bank completes an assessment of European lenders by the end of this year, Greece will learn whether it can use leftover money from the bank-aid fund to reduce debt or refinance it, said a Greek government official, who declined to be named in line with policy.

[Bloomberg]

ekathimerini.com , Wednesday April 2, 2014 (16:10)  
European stock-index futures advance after fed policy decision
Bank of Cyprus sells UK loan portfolio
National Bank of Greece said to pick advisers for Turkish sale
Very lucky punters set to be probed
Man´s charred remains retrieved from vehicle following accident
Police in Athens were investigating the circumstances surrounding a car accident that led to a man's death on Petrou Ralli Avenue in the early hours of Thursday. The victim's charred remains...
SYRIZA ahead of ND, new opinion poll shows
A new opinion poll conducted in September showed opposition SYRIZA ahead of conservative New Democracy. The survey was carried out by a University of Macedonia research institute on behalf o...
Inside News
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
SOCCER
Mitroglou rediscovers scoring touch after Fulham let-down
Costas Mitroglou banished the memories of his disappointing spell in England after breaking a 10-month goal drought as Olympiakos Piraeus secured a thrilling 3-2 Champions League win over At...
Inside Sports
COMMENTARY
Greek society’s and lenders’ fatigue
The issue of early elections continues to dog the coalition government despite all the official denials. That the administration is losing its cool is obvious. The political discourse has no...
EDITORIAL
Legitimacy control
The process of checking the authenticity of the qualifications of civil servants hired in the broader public sector during the period of major waste and corruption must move on. The evaluati...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Man´s charred remains retrieved from vehicle following accident
2. European stock-index futures advance after fed policy decision
3. Bank of Cyprus sells UK loan portfolio
4. National Bank of Greece said to pick advisers for Turkish sale
5. SYRIZA ahead of ND, new opinion poll shows
6. Extradited Greek couple to face magistrate in Athens
more news
Today
This Week
1. SYRIZA ahead of ND, new opinion poll shows
2. Extradited Greek couple to face magistrate in Athens
3. National Bank of Greece said to pick advisers for Turkish sale
4. European stock-index futures advance after fed policy decision
5. Bank of Cyprus sells UK loan portfolio
6. Man's charred remains retrieved from vehicle following accident
Today
This Week
1. Greece on standby
2. Avramopoulos appointed Commissioner for Migration and Home Affairs
3. Central Athens traffic restrictions back in force on Monday
4. Greece at bottom of social justice scale among EU28
5. EU bank tests may miss trillion dollar risk, study finds
6. Lost in the fog
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.