Greece to announce bond buyback results Wednesday

Published on NewsOK Modified: December 11, 2012 at 5:47 pm •  Published: December 11, 2012
Advertisement
;

ATHENS, Greece (AP) — Greece will reveal the results of a key debt buyback deal Wednesday, after an extended deadline for private investors to decide whether they will sell back their Greek bond holdings at a discount expired without any official announcements.

Finance ministers from the 17 European Union countries that use the euro held a conference call late Tuesday on the deal, which is designed to ease Greece's crippling debt load and unlock vital rescue loans.

There were no comments after the call, and the Greek debt management agency said it would issue a statement on investor response early Wednesday.

The deal offered attractive terms to foreign funds that had bought the Greek bonds at rock bottom prices during the worst period of the financial crisis and now stand to make a hefty profit. Greece's cash-starved banks, which own more than €15 billion worth of the bonds, had little option other than to sign up as they depend on government rescue loans.

Greece's main stock index rallied Tuesday, closing 2.3 percent higher, on expectations that the deal would succeed.

The country's international bailout creditors — fellow eurozone countries and the International Monetary Fund — had demanded the buyback as one of the conditions for paying out a long-delayed installment in rescue loans.

IMF chief Christine Lagarde told reporters in Colombia on Tuesday that she would leave it to the EU finance ministers to comment at length but expressed satisfaction with the deal.

"For the moment I can only welcome the results that have been produced by the debt buyback," she said.

If the buyback goes well, eurozone officials will approve Thursday the disbursement of €34 billion. The money is earmarked to boost domestic lenders and pay some of the government's mounting bills to state suppliers.

Debt-crippled Greece has depended on international rescue loans for the past two and a half years, after it admitted its budget deficit was more than three times the initial forecast and swiftly lost access global bond markets. In exchange for the funds, the government repeatedly slashed incomes and raised taxes to tame the deficit — but in the process created widespread public resentment.

| |

Advertisement


Trending Now



AROUND THE WEB

  1. 1
    Former OU coach Sunny Golloway goes off at Auburn
  2. 2
    Chelsea Clinton Is Pregnant
  3. 3
    Tulsa World: Missouri’s Frank Haith positioned to become TU’s basketball coach
  4. 4
    Oklahoma football: Peyton Manning stops by Sooners film session
  5. 5
    VIDEO: A look at the Air Jordan XX9 in Thunder colors
+ show more