Τhe Greek government is planning a 30-billion-euro debt swap programme, aimed at improving liquidity in the secondary bond market and to facilitate the country’s next move in global capital markets.
Bank officials expect this swap plan to be finished by mid-November, covering 20 different bonds. These securities were issued after a restructuring of Greek debt in 2012 and have a maturity up to 2042. The swap exercise will be made with new bonds of five, 10, 15 and 20-year duration. The interest rate of the bonds will be fixed and will be set so as to have zero impact on debt-holders and the Greek state. This means that bondholders and the Greek state will not suffer any damages but at the same time will not gain anything.
Market officials noted completion of the bond swap plan will contribute to restoring liquidity in the secondary bond market and strengthen a ?yield curve?, contributing to the country’s return to capital markets.
Greece tapped capital markets last July after an abstention of around three years, issuing five-year bonds worth 3.0 billion euros.
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Source: ANA-MPA
