Friday August 22, 2014 Search
Weather | Athens
32o C
25o 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)  
Spanish government bonds rise with Italy´s before Draghi speech
Greek peach farmers await Brussels decision on compensation
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Hardouvelis hears grievances of coalition MPS to unified property tax bill
Finance Minister Gikas Hardouvelis on Friday briefed MPs from junior coalition partner PASOK on the proposed improvements to a contentious unified property tax, known by its acronym ENFIA, a...
Avramopoulos, Hagel hammer out ´roadmap´ of defense cooperation
Defense Minister Dimitris Avramopoulos emphasized, after talks with his American counterpart Chuck Hagel late on Thursday, the "truly excellent level of the Hellenic-American defence coopera...
Inside News
SOCCER
Panathinaikos, Asteras Tripolis notch up vital wins in Europa League
Thursday proved a very productive night for two of the three Greek teams performing in the Europa League as Panathinaikos and Asteras Tripolis secured vital wins in the first legs of their p...
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
Inside Sports
COMMENTARY
Nationalism on steroids
Bodybuilders are in a league of their own. They rarely make headlines for their achievements, their performance, or being role models. In contrast, they’re more likely to make the news due t...
EDITORIAL
Time to kick a stupid habit
Official figures indicate that tax dodging continues unabated across Greece’s tourist areas. According to data made available by the Finance Ministry following checks conducted between July ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Hardouvelis hears grievances of coalition MPS to unified property tax bill
2. Avramopoulos, Hagel hammer out ´roadmap´ of defense cooperation
3. Spanish government bonds rise with Italy´s before Draghi speech
4. Greek peach farmers await Brussels decision on compensation
5. Justice Minister seeks postponement to debate in Parl´t of anti-racism bill
6. Coast guard intercepts 180 migrants in Aegean in two days
more news
Today
This Week
1. Coast guard intercepts 180 migrants in Aegean in two days
2. Aftershocks rattle Halkidiki after strong 5-Richter quake
3. Avramopoulos, Hagel hammer out 'roadmap' of defense cooperation
4. Greek peach farmers await Brussels decision on compensation
5. Spanish government bonds rise with Italy's before Draghi speech
6. Justice Minister seeks postponement to debate in Parl't of anti-racism bill
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys ‘no’ to debt collection agencies
6. The magical mountain
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.