ECONOMY

More than half of €4bln Greece is to receive next week will go straight back to lenders

Greece hopes to receive 4 billion euros from the eurozone on Monday but more than half of this money will kept aside to pay for maturing bonds held by the European Central Bank and national central banks.

The funds are due to be paid into a special account at the Bank of Greece next week but 2.26 billion euros will be earmarked by the troika for the payment of existing debt that matures on August 20, reports Naftemporiki newspaper.

The nominal value of bonds held by the ECB is 1.9 billion euros, while interest is 76 million euros. Eurozone central banks hold 268 million euros worth of Greek paper and another 10.7 million euros is due in interest.

The bonds were not restructured as part of last year’s PSI and have an interest rate of 4 percent.