Greece has done it. Athens has formalized the results of the buyback offer of government bonds: investors joined for an aggregate amount of €31,9 billion in nominal value. The initial target of the buyback was 30 billion. The operation, which will make it possible to reduce the Greek debt, was part of the conditions set by the international creditors to release the next tranche of aid.
The repurchase took place at current market prices, on average equal to 33,8% of the nominal value, according to data released by the agency that manages the Greek public debt. The effective cost of the operation thus amounted to 11,29 billion euro.
Since the final amount has exceeded the funds initially foreseen, in addition to the 10 billion euros made available by the temporary European EFSF bailout fund, Athens will ask the same fund to provide a further 1,29 billion.
