The Public Debt Management Organization is proceeding with the issuance of a new 30-year bond.
The bid book is expected to open possibly on Wednesday, market conditions permitting.
Public debt: Greece plans early repayment of 5 billion euro loans
Mandate to the banks BNP Paribas, BofA Securities, Deutsche Bank, Goldman Sachs Bank Europe SE, JP Morgan and Piraeus Bank as leaders of the issuance of a 30-year bond maturing on June 15, 2054, ODDIX gave.
This is Greece’s second “big” exit to the markets for 2024, after the issuance of the new 10-year bond in January,
It is recalled that a few days ago the ODDIX proceeded with an auction with the reissuance of Greek bonds maturing on February 4, 2035, raising 200 million euros. The yield was set at 3.61%.
Earlier today, it was announced that Greece plans to repay up to 5 billion euros ($5.34 billion) of bailout loans to eurozone countries early this year as it seeks to return to normalcy after a decade-long debt crisis, as two government officials told Reuters.
The repayment of the loans is planned to be made from the “cushion” of reserves of approximately 35 billion euros, as happened with the previous early repayments.
Movements
It is worth noting that in the spring of 2022, 2.645 billion euros were returned to the partners, while in the same year the country’s obligations to the International Monetary Fund were zeroed out (1.86 billion euros were paid, which would normally be paid in early 2024).
Eurozone first memorandum loans amount to €52.9 billion with repayment periods from 2020 to 2040 and at 3-month Euribor + 0.5%, which makes them expensive as the 3-month Euribor is 3.94 %.
From this year, the servicing of EFSF (European Financial Stability Fund) loans of 141.8 billion euros with repayment in 2056 began, while from 2034 an additional 86 billion euros are added from the ESM until 2060.
According to the analysts, by 2034 our country should have de-escalated the debt-to-GDP ratio below 100% in order to be able to lend based on the interest rates that will apply.
For 2024, general government debt is projected to shrink again to 152.3% of GDP from 160.3% of GDP in 2023 (€355 billion in absolute numbers).
The aim is to strengthen the sustainability of the public debt and the confidence of the markets in the prospects of the Greek economy, in a period favorable for the country, after the recovery of the coveted investment level.
