Greek debt buyback a partial successs

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Greek debt buyback a partial successs

Greek debt buyback a partial successs
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Greece’s attempt to reduce its debt has been only a partial success.

Athens was able to buy back more of its long term government bonds that it had originally planned, but had to offer more than it wanted to the investors who were selling those bonds.

As a result it has not cut its huge debt pile by as much as it hoped.

Last Friday it was well short of the 30 billion euro target which eurozone finance ministers said was necessary.

By extending the offer to Tuesday, Greece was able to attract bids totalling 31.8 billion euros.

However, the average price paid for the bonds was slightly above expectations which means the total debt has been reduced by less than planned.

For Finance Minister Yannis Stournaras and his colleagues, the success of the buyback was crucial to ensuring Greece’s debt is put back on a sustainable footing.

They do believe they have done enough to unlock badly-needed aid from the International Monetary Fund and European Union.

A decision on whether the money will be released is due on Thursday from the region’s finance ministers.