Successful debt buyback opens the way for the unlocking of official funding to Greece, implementation of new package of debt relief measures
Successful debt buyback opens the way for the unlocking of official funding to Greece, implementation of new package of debt relief measures
Greece Focus Notes
13 Δεκεμβρίου 2012
• In view of the apparent Greek bond buyback success, we expect the Eurogroup on 13 December 2012 to reach an agreement on how to cover the incremental financing (ca €1.29bn) required for the purchase of the full amount of bonds validly tendered in the exchange (€31.9bn). A decision is also likely on some additional relief measures to facilitate fulfillment of the 124%-of-GDP debt target in FY-2020. • Our understanding is that the required financing initially earmarked for the implementation of the buyback (up to €10bn) constitutes part of the 2nd bailout package for Greece agreed with official lenders earlier this year (i.e., it does not represent new official-sector funding per se). In our view, the same treatment will apply to any incremental amount needed to finance the buyback operation...