The new bonds Greece will issue as part of its debt swap plan will have enhanced credit status, a Greek newspaper reported today, citing people familiar with talks between the debt-laden country and its private lenders.
Euro zone financial ministry officials agreed late on Wednesday that the new bonds will have the same status as a 30-billion euro loan which Greece stands to get from the euro zone's rescue fund EFSF, Kathimerini reported.
This will make the new bonds safer for investors, thus reducing the net-present-value loss they will incur on their Greek bonds to about 54 per cent, according to the report.
Under a debt-cut deal agreed by EU leaders in October, Greece plans to exchange its old, €206 billion debt to private bondholders by half, to about €100 billion. Greece has said it plans to offer bondholders about €70 billion in new bonds and 30 billion euros in cash.
A Greek finance ministry official told Reuters yesterday he was optimistic that talks with bankers can be concluded in the next few weeks.
Talks between Greece and its lenders are set to continue in Paris today.
Reuters
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