Friday Jul 25, 2014 Search
Weather | Athens
32o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurozone central banks may roll over their Greek bonds

Eurozone central banks may decide to roll over their holdings of Greek debt to reduce by 5.6 billion euros the amount governments will need to provide Athens by 2016, according to an document obtained by Reuters.

Such a move would cut the amount to 2 billion euros from 7.6 billion, the document, which emerged from this week's eurozone finance minister's meeting, showed.

International lenders -- eurozone countries, the European Central Bank and the International Monetary Fund -- agreed early on Tuesday on a debt reduction plan for Athens that would bring Greek debt to 110 percent of GDP in 2022.

This would be down from almost 190 percent expected for next year.

According to the document, Greece would need to get 1.8 billion euros in extra financing in 2012-2014 and another 5.8 billion between 2015 and 2016 -- a total of 7.6 billion.

But it floated the idea that if the eurozone's 17 national central banks, which together form the Eurosystem, decide to replace the Greek bonds they hold with new Greek paper as the debt matures, it would save Greece the need to redeem 3.7 billion euros in 2012-2014 and 1.9 billion euros in 2015-2016.

It lists the item of roll-over of ANFA holdings -- a term to describe central banks' investment portfolios -- in parenthesis, suggesting it has yet to be agreed or in any way formalized.

Furthermore, it notes that the amounts mentioned are tentative and subject to approval by national central banks.

There is no public data on the amounts of Greek debt held by individual eurozone central banks.

The roll-over idea is separate from the issue of the European Central Bank returning profits to Athens from the Greek bond portfolio it has acquired under its Securities Market Programme.

That will reduce the financing needs of Greece by 4.1 billion euros in 2012-2014 and another 3.0 billion in 2015-2016.

This return of profits -- along with cutting interest on eurozone loans to Greece, a deferral of interest payments, maturities extension, and several other measures -- allowed the eurozone to cut the amount of new money it would have to lend to Greece to 7.6 billion euros from 32 billion euros.

A roll-over of the Greek bonds in investment portfolios of central banks would increase the overall Greek public debt by 0.1 percent of GDP in 2020 and 2022.

But this would be offset by new debt relief measures penciled in by international lenders for the coming years that would cut Greek debt by 2.7 percent of GDP by 2020 and 5.1 percent of GDP by 2022, the document said.

This new debt relief could happen once Greece reaches a primary surplus -- a positive budget balance before servicing debt -- and if Greek reforms are on track, eurozone finance ministers decided on Tuesday.

[Reuters]

ekathimerini.com , Wednesday November 28, 2012 (13:54)  
Illegal betting worth 5.5-6 billion euros
Wait is still on for many taxpayers
Hardouvelis to push for milestones target
IMF insists on eurozone lightening Greeces debt
PPC to look into death of disabled customer
The Public Power Corporation (PPC) launched an administrative inquiry on Thursday into why electricity supplied to the home on Crete of a quadriplegic customer on life support was cut, resul...
Boutaris plans Islamic art museum for Thessaloniki
Thessaloniki Mayor Yannis Boutaris on Thursday announced plans to establish a museum of Islamic art in Greeces northern port city. Boutaris, who was re-elected in May, told Kathimerini he h...
Inside News
TRACK & FIELD
Athens, the Marathon capital of the world for good
Paco Borao, the man who restored Athens as the Marathon capital of the world with the establishment at the Olympic Sports Center of the headquarters of the International Association of Marat...
TRACK & FIELD
Pole vault record on same day as three doping cases
Greek track and field had a mixed weekend, as on the same day as Katerina Stefanidi matched the national record in pole vault as well as the leading result in Europe so far this season, thre...
Inside Sports
COMMENTARY
When evaluation is seen as useless
The reactions toward the governments plans for an evaluation of public sector workers are completely unsurprising. Civil servants and not just the unions that represent them abhor the m...
EDITORIAL
Playing the good guy
There is a part of the government that is striving to fulfill the commitments that Greece has undertaken toward its foreign creditors, most of which pertain to reforms that are absolutely es...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Illegal betting worth 5.5-6 billion euros
2. Wait is still on for many taxpayers
3. Hardouvelis to push for milestones target
4. IMF insists on eurozone lightening Greeces debt
5. Investors buy into possible rating upgrade
6. PPC to look into death of disabled customer
more news
Today
This Week
1. Quadriplegic woman on life support 'dies due to unpaid power bills'
2. Efforts continue on Crete to find 'Sifis' the crocodile
3. Democracy 'retreated' during crisis, says Papoulias
4. Family of deceased woman on life support says application for 'special status' had been filed with PPC
5. Medical assistance for Acropolis visitors
6. Presidential election will not lead to snap elections, Samaras tells ND deputies
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Greek banks able to tap investors after stress tests, HFSF Says
5. Unequal after death
6. Death on MH17 and our global war
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.