Bond issues of €12 bln next year


Greece is planning to issue new bonds worth 12 billion euros next year, according to a plan the Public Debt Management Agency (PDMA) has presented to investors.

With funding needs adding up to €24.6 billion in 2022, the remainder will be covered through the reduction of cash reserves by €6.6 billion, European resources of €1.3 billion, privatization revenues of €700 million, and the return of SMP/ANFA earnings of €1.3 billion.

Greece’s gross funding needs will not exceed 20% of its gross domestic product in 2021, close to the eurozone average rate of 16.5%, and will drop below 15% in the coming years.

The PDMA pointed out that the cash reserves currently amount to €32 billion, sufficing to cover the needs of more than three years. Treasury bills are currently estimated at €11.8 billion and are expected to shrink further in the course of 2022.

On Wednesday the PDMA auctioned 13-week T-bills and drew €487.5 million at a negative interest rate of 0.46%, a record low. At the previous such auction on December 1 the rate secured had been -0.43%. The coverage ratio on Wednesday was a remarkable 2.98.