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Greece in New Market Test

 Greece in New Market Test Greece in New Market Test

Greece on Wednesday offered to exchange some €30 billion ($35 billion) in bonds in a new market test for the country seeking to emerge from its latest bailout, AFP reported. Floated on the Athens stock exchange, the swap involves a batch of 20 maturities originally issued in 2012, when Greece had brokered a major debt writedown. Investors holding these bonds can now exchange them with new paper expiring in 2023 to 2042. The finance ministry said the purpose of the swap was to “align the terms of (Greece’s) outstanding debt with market standards for sovereign issuers in order to normalize (Greece’s) yield curve.” Athens also wants to “provide the market with a limited series of benchmark securities which are expected to have significantly greater liquidity than the existing series of designated securities,” a statement on the swap said. Bondholders have until November 28 to accept or reject the swap. Greece plans to create a “cash buffer” to ease its way out of its third bailout in August.

 

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