Greek Government To Present New Bond Issue
Greece's Alternate Minister of Economy and Development, Alexis Charitsis declared the government is considering options for a new bond issue. The potential date is after next week’s meeting of the Eurozone officials, where they will discuss the debt relief for Greece in Luxembourg. Charitsis said: "All our efforts are focused on the Eurogroup of the 21st (of June) where we expect to have an agreement on debt relief".
Among those debt relief measures, Eurozone ministers are considering: extension of maturities and grace periods of up to 15 years on around EUR 130b of loans issued to Greece under the second bailout; a buy-out of expensive loans worth more than EUR 20b from the IMF and eurozone central banks due over the next decade so that they are replaced by cheaper loans from the European Stability Mechanism, the eurozone bailout fund.
Greece might also get new loans of some EUR 11b. The loans would create a cash buffer for Greece that would shoulder its borrowing needs for the next 18 to 24 months. Its cost might reach EUR 20b. The measures would be very helpful in Greece’s return to the financial market.