Friday May 29, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bonds maturing in May to create funding gap

The most likely scenario is for the disbursement of the tranches of 2.8 billion and 4.2 billion euros (the latter being the eurozone’s share in the first-quarter installment) to be approved by the May 13 Eurogroup meeting.

By Sotiris Nikas

The Greek streamlining program is facing the threat of a funding gap and the Finance Ministry is examining the option of an extraordinary issue of treasury bills to cover part of the Greek bonds which are set to expire next month.

May 20 is the maturity date of bonds totaling 5.6 billion euros. While 4 billion euros of that amount is in the portfolio of the European Central Bank, the rest (1.6 billion euros) is in the portfolios of the national central banks of the eurozone. The latter bought the Greek bonds before the outbreak of the crisis and, according to a Eurogroup decision last December, they were to examine the possibility of postponing the maturity date of those holdings, known as ANFA.

Nevertheless, sources say that none of the eurozone’s national central banks has opted to do so, meaning that Greece will have to pay out next month, despite the existence of a provision in the country’s funding program that this amount would not be paid. This generates a funding gap that will have to be covered in some way so as not to create fresh problems with the Greek debt figures.

Ministry officials say that the government and the country’s international creditors have approved the issue of an extraordinary set of T-bills up to May 14. The reason for this is because the executive council of the International Monetary Fund is expected to convene after May 20 to approve the disbursement of its next bailout tranche to Greece, amounting to 1.8 billion euros.

No decision has been made yet, but the solution of an extra T-bill issue is gaining ground as the clock keeps ticking. Strengthening the likelihood is the fact that that is exactly what happened last year in a similar situation.

Alternatively, any such hole could be plugged by a front-heavy disbursement of bailout installments by the eurozone. For this reason, the Greek side is pushing for the approval of the second quarter’s 3.2-billion-euro tranche by eurozone finance ministers at the May 13 Eurogroup meeting – before the creditors’ representatives complete their inspection on the course of the bailout agreement’s implementation. That cannot be ruled out but it is not very likely.

Equally unlikely – though not impossible – is the disbursement of the 2.8-billion-euro March installment this Monday, when the Euro Working Group of eurozone finance ministry officials convenes. If the Greek Finance Ministry’s multi-bill is passed by tomorrow night, the EWG might give the green light for the immediate release of the 2.8 billion euros. However, ministry officials say that the most likely scenario is for the disbursement of the tranches of 2.8 billion and 4.2 billion euros (the latter being the eurozone’s share in the first-quarter installment) to be approved by the May 13 Eurogroup meeting.

Besides the ANFA issue, the ministry is also concerned about the delays in the privatizations program. The revenues from sell-offs could be used for the servicing of the country’s debt, but on a cash basis they are also used for the coverage of day-to-day needs.

According to the state budget, in the period from January to May 2013, the state coffers should have earned 272 million euros from privatizations. Instead their revenues from this source were less than 50 million euros in the year’s first four months.

ekathimerini.com , Friday April 26, 2013 (20:43)  
Next Greek aid program isn’t on table yet, says Moscovici
Hoteliers seek VAT solutions
Chaos in the system for tax declarations
Lenders’ first-quarter data suffer from NPL expansion
Some blame EU Commission for Greek obstinacy in debt talks
Damned if you do, damned if you don't. Some eurozone countries are accusing the European Commission of giving Greece false hope of new loans for less reform effort, but they still want Bruss...
12 Russians injured in lightning strike at ruins on Crete
Greek authorities say 12 Russian tourists have been injured in a lightning strike at the archaeological site of Knossos, on the southern island of Crete. Health officials say one of the tour...
Inside News
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...
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
Inside Sports
COMMENTARY
Only Greece can end its miserable ´Groundhog Day´
In the film "Groundhog Day," Bill Murray is condemned to relive the same 24 hours on an endless loop. The happy ending (he gets the girl) only comes when he changes his destiny by becoming a...
COMMENTARY
FIFA and fair play
Greeks must be among the less excited observers of the ferocious crackdown on the highest echelons of global soccer’s administrative body, FIFA: from the lowest leagues to our top teams, fro...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Some blame EU Commission for Greek obstinacy in debt talks
2. 12 Russians injured in lightning strike at ruins on Crete
3. Next Greek aid program isn’t on table yet, says Moscovici
4. Greece creditors say no deal near as G-7 frustration vented
5. Hoteliers seek VAT solutions
6. Chaos in the system for tax declarations
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. Endless confusion and worry
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. Tsipras faces down radicals within SYRIZA over terms of deal
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.