Greece bond swap in August
Source: Agencies |
July 27, 2011, Wednesday
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Print Edition
Print Edition
PROCEDURES for a voluntary swap of privately-held Greek government bonds for longer maturity paper will start in August, Greece's deputy finance minister said yesterday.
Greece's private sector creditors will take a 21 percent loss on their bond holdings as part of a 37 billion euro (US$54 billion) contribution to a rescue plan for the debt-stricken country, agreed at a eurozone summit last week.
"In the coming days, in collaboration with (bank lobby) IIF, talks outlining the exact procedure that will be followed so that holders of Greek government bonds choose one of four options and proceed to a debt swap will be completed," Deputy Finance Minister Filippos Sachinidis told Mega TV. "Yes, this procedure will start in August."
The International Institute of Finance (IIF) has estimated a take-up rate of about 90 percent for the voluntary program, which gives banks the option to swap Greek debt with new bonds with maturities of up to 30 years.
Officials want to conduct the voluntary bond swap quickly to minimize the period during which Greece may be in partial default.
"The goal is for this to last as briefly as possible," Sachinidis said. "It appears that we will manage to secure a satisfactory participation to proceed with the exchange."
On Monday, IIF's chief Charles Dallara, who met with visiting Greek Finance Minister Evangelos Venizelos, said the voluntary bond swap of Greek debt would depend on continued IMF financial support.
Greece's private sector creditors will take a 21 percent loss on their bond holdings as part of a 37 billion euro (US$54 billion) contribution to a rescue plan for the debt-stricken country, agreed at a eurozone summit last week.
"In the coming days, in collaboration with (bank lobby) IIF, talks outlining the exact procedure that will be followed so that holders of Greek government bonds choose one of four options and proceed to a debt swap will be completed," Deputy Finance Minister Filippos Sachinidis told Mega TV. "Yes, this procedure will start in August."
The International Institute of Finance (IIF) has estimated a take-up rate of about 90 percent for the voluntary program, which gives banks the option to swap Greek debt with new bonds with maturities of up to 30 years.
Officials want to conduct the voluntary bond swap quickly to minimize the period during which Greece may be in partial default.
"The goal is for this to last as briefly as possible," Sachinidis said. "It appears that we will manage to secure a satisfactory participation to proceed with the exchange."
On Monday, IIF's chief Charles Dallara, who met with visiting Greek Finance Minister Evangelos Venizelos, said the voluntary bond swap of Greek debt would depend on continued IMF financial support.
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