Greece will soon proceed with a bond swap exercise worth 30 billion euros, a top Finance Ministry official told ANA on Tuesday.
With the swap plan, the Greek state aims to improve liquidity in the second bond market and to facilitate the country’s next exit in capital markets. The bonds to be included in the swap deal are the bonds issued after the PSI and have a maturity of up to 2042. According to sources, the swap will be made with new bonds of 5-, 10-, 15- and 20-year duration. The interest rate of the bonds will be fixed and will be defined in a way to have neutral impact both to bondholders and the Greek state. This means that both bondholders and the Greek state will not suffer any financial damage, nor they will gain any profit from the transaction.
Bond market officials said completion of the swap deal will contribute in restoring liquidity in the domestic secondary bond market and will strengthen a yield curve in the bond market.
Greece returned to international capital markets in July after a three-year abstention, issuing five-year bonds worth 3.0 billion euros.