BRUSSELS (MNI) – The funding for the Greek government’s planned
bond buyback, which is crucial for the country to secure further aid
from the Eurozone and International Monetary Fund, has “not been worked
out yet,” the European Commission said Tuesday.
“Those are details which remain to be worked out,” said a spokesman
for the Commission. “It is a matter for the Greek authorities to
communicate,” he said.
Greece’s international bailout partners gave their provisional
approval early Tuesday for the release of E44 billion in overdue aid for
Athens and announced a multi-pronged E40 billion strategy to ensure the
country’s debt sustainability, but said that the measures were
conditional on the successful completion of the buy-back programme.
Greece is aiming to buy back and cancel privately held bonds with a
face value of E30 billion at a price of 25 to 33 cents on the euro.
Athens is expected to borrow the expected E10 billion to fund the
transaction from its international creditors.
With Eurozone finance ministers hoping to formally release a first
tranche of aid worth E34.4 billion by December 13, Greece has little
time left to arrange and complete the buyback.
–Brussels Newsroom, +324-952-28374; pkoh@mni-news.com
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