Monday December 22, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
State bond buyback terms seen as favorable

 Market gives positive response to PDMA proposal to cut Greek debt and help release bailout tranche

By Sotiris Nikas

The buyback process for Greek state bonds began officially on Monday on better terms than expected, with the government well aware that its outcome will determine whether Greece manages to secure the disbursement of 34.4 billion euros in bailout funds on December 13.

The price range at which the state will buy back its bonds is higher than what the markets had anticipated, as it stands about 4 to 10 percent above November 23 prices, which were originally thought to be the yardstick. The Dutch auction method chosen sets a minimum price for bonds and means that the state will pay the same amount to all bidders at the price of the highest bid, a measure which will be good for Greek banks, which will also participate.

The Public Debt Management Agency (PDMA) announced on Monday that the country will have 10 billion euros at its disposal for the program from the European Financial Stability Facility (EFSF), with offers from private bondholders to be accepted up until 7 p.m. on Friday.

However, as the text of the invitation states, Greece reserves the right to stop the program when it sees fit, or extend it or even cancel it altogether. The most likely of the three is an extension if that is considered useful to cover the interest by bondholders.

As things stand, the arrangement date is December 17, but what is certain is that Pthe DMA maintains the right to accept any offers it considers as the best for Greece and the effort to reduce its debt, regardless of what private bondholders offer.

The total amount of bonds for the buyback stands at 61.4 billion euros. The PDMA will conduct 20 different auctions, as many as the number of bonds in question.

The markets response to the invitation of interest was favorable. Foreign analysts told Kathimerini that the terms of the proposal are good, and this was also reflected in the spread between the Greek 10-year bond and the benchmark 10-year German bund, that was reduced by about 150 basis points yesterday compared with last Friday. The Royal Bank of Scotland recommended that investors participate in the Greek bond buyback program, while the Financial Times cited Greek bankers saying that the minimum price set will bring the desired result.

ekathimerini.com , Monday December 3, 2012 (22:59)  
Spanish bond gains push yield to record low as Greek debt rises
Low costs, yield hunt to propel long-term euro zone bond sales in 2015
Greek current account deficit shrinks in October
Energy shares and Greek rebound lift European equities
ANALYSIS
Greek parliament vote in balance after Samaras election offer
Greek Prime Minister Antonis Samaras' surprise offer to lawmakers to go to the polls late next year in exchange for a vote for his presidential nominee has injected fresh momentum into his f...
Parliament to investigate Haikalis claim he invested in stock market
The parliamentary committee responsible for monitoring MPs derivation of wealth declarations (pothen esches) is due to meet in the next few days to scrutinize claims by Independent Greeks M...
Inside News
SOCCER
Special day for Abidal, lucky one for PAOK
PAOK scraped through its Livadia challenge beating Levadiakos to remain on top of the Super League for Christmas, one point ahead of Olympiakos that enjoyed a great game at Kalloni and offer...
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
Inside Sports
INTERVIEW
Klaus Regling stresses debt sustainability through commitment to reforms
BRUSSELS The man who is responsible for the loans to Greece as managing director of the European Stability Mechanism (ESM/EFSF), Klaus Regling, is the only high-ranking European official w...
INTERVIEW
Crisis of confidence will come back again and again, says Thomas Piketty
Hes treated like a rock star wherever he goes to lecture. His book Capital in the 21st Century, a study on income and wealth inequality from the 18th century to the present, recently tran...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Spanish bond gains push yield to record low as Greek debt rises
2. Low costs, yield hunt to propel long-term euro zone bond sales in 2015
3. Greek parliament vote in balance after Samaras election offer
4. Parliament to investigate Haikalis claim he invested in stock market
5. Tuesday morning stoppage on metro, electric railway and tram in Athens
6. Greek current account deficit shrinks in October
more news
Today
This Week
1. Euro shaky on ECB and Greece, dollar keeps edge
2. Government accuses SYRIZA and Independent Greeks of 'clear alliance'
3. Prosecutor gathers depositions in Independent Greeks 'bribe' probe
4. Draghi starts squaring QE circle in month of persuasion for ECB
5. Energy shares and Greek rebound lift European equities
6. Parliament's ethics committee to look into independent MPs' comments
Today
This Week
1. Samaras summons bond vigilantes with euro exit talk
2. High stakes
3. Europe's drama in Greece needs final act to avoid tragedy
4. A friendly yet firm message from Pierre Moscovici
5. On the edge but not gutless
6. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.