Friday October 24, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek debt-buyback operation may address holdouts, troika says

Greece’s debt-buyback operation may extend to holders of almost 4 billion euros ($5.2 billion) of government bonds who opted not to participate in the country’s debt restructuring earlier this year, the biggest in history.

The buyback will “address” the holders of bonds governed by non-Greek law who refused to tender them in the 200 billion- euro debt swap in March, hoping to get paid in full, according to an updated draft of Greece’s debt-sustainability assessment from the troika comprising the European Commission, the European Central Bank and the International Monetary Fund.

The Greek buyback is part of a package of measures approved by euro-area finance ministers this week to cut the nation’s debt. While Greece has gotten pledges for 240 billion euros of aid, the funds have been frozen since June as the government tries to get its bailout program back on track after it was disrupted by two elections and a deepening recession.

The buyback, which Finance Minister Yannis Stournaras said will be unveiled next week, will target 62 billion euros of new bonds issued after the debt swap. Greek banks hold 15 billion euros of the new bonds, while the country’s pension funds hold 8 billion euros.

The deal aims to bring Greece’s debt down to 124 percent of gross domestic product in 2020 from the 190 percent it was projected to reach in 2014 without the measures.

Other steps mentioned in the report, which was posted on the Dutch government’s website and is dated Nov. 27, include forgoing a reduction in Greece’s Treasury bill stock, which pares Greece’s financing in the next two years by 9 billion euros, and postponing a build-up of the Treasury’s cash buffers.

Dutch Prime Minister Mark Rutte told Bloomberg News on Wednesday that Greece may need more financial help to stay in the euro.

“We now have a menu, an approach which brings the debt of Greece back into the realm of what we anticipated when the second package was installed in February,” Rutte said.

The troika also said it foresees earnings from ECB holdings in Greek bonds through its Securities Markets Program being returned to Greece via euro-area members.

The IMF has set the 2020 debt-reduction target as a condition for continuing to fund a third of Greece’s bailout program. IMF Managing Director Christine Lagarde said after the euro-area finance ministers’ meeting that the fund will examine the results of the buyback before deciding whether to approve disbursement of additional aid.

Finance ministers plan to make a formal decision on Greece’s 34.4 billion-euro disbursement by Dec. 13. The ministers included no details in their statement of how the buyback would be implemented or funded, or specifics about the size and what would count as success. [Bloomberg]

ekathimerini.com , Thursday November 29, 2012 (13:23)  
ECB bank assessment to show 6-billion-euro capital gap, Citi says
ECB vies for third time lucky in European stress tests
Cyprus GDP upgrade seen as boosting bailout exit plans
Tax rate cut in catering sector has paid off
Finance Minister appeals for support for amendments ahead of vote
Finance Minister Gikas Hardouvelis on Friday called on MPs across the political spectrum to support a series of legislative amendments proposed by his ministry, including a recommendation to...
Credit line only open to Greece if it meets economic targets, sources say
Greece will only be able to access to a precautionary credit line, currently being discussed between Greek government officials and their eurozone counterparts, if the country finds itself l...
Inside News
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
BASKETBALL
Greens succumb to first loss at Bayern
Panathinaikos’s unbeaten run in all competitions came an end on Thursday as the Greek champion lost 81-75 at Bayern Munich for the Euroleague. Bayern is a team that improves every year, and ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Finance Minister appeals for support for amendments ahead of vote
2. Credit line only open to Greece if it meets economic targets, sources say
3. ECB bank assessment to show 6-billion-euro capital gap, Citi says
4. Venizelos slams Turkey for ´flagrant violation of international law´ off Cyprus
5. ECB vies for third time lucky in European stress tests
6. Cyprus president to be released from hospital on Friday following readmission
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. ECB vies for third time lucky in European stress tests
4. Cyprus GDP upgrade seen as boosting bailout exit plans
5. Cyprus president to be released from hospital on Friday following readmission
6. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Coalition shooting itself in the foot
3. Greece’s closed society is central to its current malaise
4. Greece must stick to reforms, says Schaeuble
5. At least 11 banks to fail European stress tests, three in Greece, report says
6. Cyprus to block Turkey's EU talks after EEZ violation
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.