Tuesday October 21, 2014 Search
Weather | Athens
24o C
11o 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 market’s 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)  
Think-tank says political uncertainty slowing investment in Greece
Tax debts to Greek state exceed 70 billion euros
Greek 2013 budget gap revised down to 1.8 pct/GDP
Greece said to seek tailor-made plan for bailout exit
Accomplice of Greece´s Number 1 fugitive arrested while trying to leave country
Self-styled anarchist Polykarpos Georgiadis, linked to Greece's Number 1 fugitive, was arrested at Athens International Airport on Tuesday while trying to board a flight to Brussels, in viol...
Trial over 2012 torture of Egyptian bakery worker in Salamina begins
The trial of four men accused of torturing an Egyptian bakery worker in 2012 on an island near the Greek capital, began on Tuesday in Piraeus after being postponed four times. Waleed Taleb w...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
INTERVIEW
The past, present and future of the Greek debt crisis
For a decade, until mid-2012, Josef Ackermann was the CEO at Deutsche Bank. It was a position that earned him the nickname “shadow chancellor” of Germany and allowed him to play a decisive r...
COMMENTARY
Self-opposing coalition
Even though a number of polls see the total percentage of the two ruling parties trailing that of SYRIZA, New Democracy and PASOK are still in government and the leftists in opposition. This...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Accomplice of Greece´s Number 1 fugitive arrested while trying to leave country
2. Think-tank says political uncertainty slowing investment in Greece
3. Trial over 2012 torture of Egyptian bakery worker in Salamina begins
4. Tax debts to Greek state exceed 70 billion euros
5. Greek 2013 budget gap revised down to 1.8 pct/GDP
6. Greece said to seek tailor-made plan for bailout exit
more news
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Self-opposing coalition
3. Gang importing heroin into Greece busted
4. Gutsy rectors
5. SDOE to probe Proton Bank loan to Thessaloniki businessman
6. Applications for heating oil subsidy set to start
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.