Arab Today, arab today greece edges toward successful debt swap
Last Updated : GMT 07:09:52
Arab Today, arab today
Arab Today, arab today

Greece edges toward successful debt swap

Arab Today, arab today

Arab Today, arab today Greece edges toward successful debt swap

Athens - AFP

Greece edged closer to clinching a crucial bond swap, with a group of key investors declaring their support as a Thursday deadline loomed for a long-sought deal to avoid a sovereign default. Officials forecast success for the Private Sector Involvement (PSI) operation, which aims to cut Greek debt by up to 107 billion euros ($142 billion) and unlock a new bailout from eurozone partners worth 130 billion euros. \"The information we have so far is positive,\" Greek government spokesman Yiannis Stavropoulos told Skai Radio. Private investors holding 111.5 billion euros, or 49 percent of eligible debt, have indicated they would participate in the bond swap, in addition to a bloc of creditors that voiced support on Wednesday. A participation rate of 75 percent of debt issued under Greek law is being sought for the deal. Athens has toughened its stance to convince creditors to accept heavy losses under the programme as the deadline of 2000 GMT Thursday drew near. \"These days are particularly crucial. The success or failure (of the swap) will be decided by midnight on Thursday,\" Finance Minister Evangelos Venizelos told private Real FM radio. Under the deal, private banks, insurance companies and investment funds are to write off about half of the face value of what they are owed. Greece has already passed retroactive legislation to force recalcitrant bondholders to participate if a substantial majority agrees to the debt swap. And it warned Tuesday that rejection of the hard-won agreement to cut privately held debt could cost investors much more in the longer term. \"Greece\'s economic programme does not contemplate the availability of funds to make payments to private sector creditors that decline to participate,\" a statement issued by the Public Debt Management Agency (PDMA) said. Meanwhile, 32 creditors on a committee of private investors that helped negotiate the bond swap said they \"strongly support the recent agreements among Greece, euro area authorities and the IMF.\" Investors from the Private Creditor-Investor Committee for Greece hold 84 billion euros in Greek debt, \"or 40.8 percent of the 206 billion euro total PSI eligible debt,\" a statement from the group said. Jean Lemierre of the French bank BNP Paribas, who was part of the debt talks, called that \"a good indicator of the trend\" among private investors. \"It is very important now to see that many institutions that hold large amounts (of Greek debt) are taking part in the exchange,\" he added. The pledge pushed Greece closer to the participation rate of at least 75 percent of investors Athens is targeting for bonds issued under Greek law. About 88 percent of the 206 billion euros in eligible debt is issued under Greek law. Failing this, Greece has said the operation might be called off, which could lead to a messy default as early as March 20, when the country is due to reimburse 14.4 billion euros in debt. Investors holding debt issued under Greek law must decide by late Thursday whether to write off half of the money they are owed, while those who hold debt issued under foreign law have until April 11 to decide. In addition to the 84 billion euros worth of debt to be swapped by the bloc of 32 banks, insurance companies and investment funds, about 18 billion euros in bonds owned by Greek retirement funds and held by the Bank of Greece were also expected to be tendered. The German reinsurance giant Munich Re has indicated it would take part with the roughly 1.5 billion euros in Greek bonds it owns. The German bank Hypo Real Estate (HRE), which holds the most Greek debt of any institution outside Greece, has not made a public statement since details of the plan were announced on February 21, but indicated prior to that that it would participate as well. This would take the total to roughly 111.5 billion euros, or 54 percent of the total debt according to a calculation made by AFP. Under the terms of the pending deal, investors are to receive new debt with a 30-year maturity, EU-backed notes and securities linked to Greece\'s future output. Speaking to France\'s Le Figaro newspaper on Wednesday, EU economic affairs commissioner Olli Rehn said he thought the operation would proceed \"without a hitch since the operation is interesting financially for the private sector.\" The plan\'s success is a key condition for a 130-billion-euro rescue package to save Greece from a debt default and avoid another potential global crisis. If all goes well, the Eurogroup of eurozone finance ministers will evaluate the situation at a teleconference on Friday, and meet on Monday in Brussels, Venizelos said. The head of the European Commission, Jose Manuel Barroso, said Wednesday that the European Investment Bank could provide 650 million euros in aid for small- and medium-sized Greek enterprises that are currently having problems finding liquidity. Venizelos scolded a handful of small Greek funds that hold about two billion euros worth of debt, roughly one percent of the total value of bonds earmarked for the debt swap, which declined to participate. \"The international market finds the offer lucrative. What sort of message do we send? That we prefer for the country to go bankrupt?\" Venizelos said. \"If the PSI fails, these bonds will be worth a big zero,\" he warned.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today greece edges toward successful debt swap Arab Today, arab today greece edges toward successful debt swap

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday