Saturday May 30, 2015 Search
Weather | Athens
14o C
09o 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)  
Greek credit contraction amounted to 2.4 pct in April
Export-oriented firms benefit from euro rate
VAT hike would put several Athens hotels at risk
ATHEX: May ends with a rise of 0.3 pct
Greece, creditors seek breakthrough as clock runs down
Greece and its lenders enter a decisive weekend of negotiations in a bid to agree on a package of cuts and reforms that would unlock another 7.2 billion euros and allow Athens to keep meetin...
Coast Guard officials linked to migrant traffickers
An investigation by the internal affairs department of the Greek Police (ELAS) has linked the leadership of the country’s Coast Guard as well as officers of the police and of the National In...
Inside News
SOCCER
Wemmer pens three-year deal with Panathinaikos
German defender Jens Wemmer has signed a three-year contract for an undisclosed sum with Panathinaikos, the Greek Super League club announced on Friday. Right-back Wemmer, 29, has been playi...
SOCCER
Panathinaikos conquers PAOK through Tavlaridis goal
A Stathis Tavlaridis goal has brought Panathinaikos to practically within one point from clinching a spot in next season’s Champions League qualifiers, as the Greens made it three out of thr...
Inside Sports
COMMENTARY
Zenobia, Barbara, Christine and the general’s daughter
ATHENS – Lovely Palmyra has fallen to the zombie horde and its people are being slaughtered as the ancient city awaits its fate. It is Friday, May 22, 2015, and from my window I see the end-...
INTERVIEW
The eurozone’s ‘ambiguous’ architecture
“That’s not something you’re supposed to say in public, right?” In his humble way, Thomas Sargent, Nobel Prize winner in Economics, tries to avoid the question posed to him by Kathimerini re...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Wemmer pens three-year deal with Panathinaikos
2. Greek credit contraction amounted to 2.4 pct in April
3. Export-oriented firms benefit from euro rate
4. VAT hike would put several Athens hotels at risk
5. ATHEX: May ends with a rise of 0.3 pct
6. Greece, creditors seek breakthrough as clock runs down
more news
Today
This Week
1. Greece creditors say no deal near as G-7 frustration vented
2. Only Greece can end its miserable 'Groundhog Day'
3. Next Greek aid program isn’t on table yet, says Moscovici
4. 12 Russians injured in lightning strike at ruins on Crete
5. Some blame EU Commission for Greek obstinacy in debt talks
6. The eurozone’s ‘ambiguous’ architecture
Today
This Week
1. Hotel contracts with a ‘Greek default clause’
2. Some 300 mln left banks on Tuesday
3. Neither Grexit nor a dual currency will solve Greece’s problems
4. No more 'quick and dirty' fixes for Greece
5. Romantic notions meet reality
6. Endless confusion and worry
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.