BRUSSELS (MNI) – The Greek government’s bond exchange proposal to
private investors is “a very good, a unique offer,” Finance Minister
Evangelos Venizelos said Thursday.
Speaking to reporters before the start of the Eurogroup meeting
here, Venizelos said that Greek authorities were now “waiting for the
response of the market.”
Last Friday Greece officially launched its debt exchange, under
which private-sector holders of E206 billion in Greek bonds will
exchange them for new securities worth 53.5% less in nominal terms. In
net real terms, factoring in lower coupon rates on the new bonds, the
investors would take a loss of around 75%.
The deal, if sufficiently subscribed, would cut outstanding
Greece’s debt by E107 billion as part of an effort to reduce its debt
ratio to 120.5% of GDP by 2020.
Venizelos said the exchange had four “very important and attractive
elements,” including co-financing, English law, the sweetener equal to
E30 billion in cash, and GDP warrants.
“This is a very good, a unique offer,” Venizelos said. “I am sure
that the market understands very well how clear my message is.”
–Brussels newsroom; a_papamiltiadou@hotmail.com
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