Greece Manages to Buyback part of Debt at 34% of value

Greece has managed to buy back some of its debt, but did not succeed in reducing its total debt by as much as its backers had hoped.

Holders of Greek debt agreed to sell 31.9bn euros of bonds back to the country at 33.8% of their face value, Greece’s debt management agency said.

After 11bn euros is spent on the purchase, the country will be writing off about 20bn euros of debt.

The buyback was a condition of Greece getting more of its bailout cash.

The French finance minister Pierre Moscovici said the “satisfactory” results of the auction should mean the funds are released later this week.

Greece has been waiting since June for the loans, to help its heavily indebted economy stay afloat.

The investors will be paid in six-month bonds from the eurozone’s EFSF rescue fund.

via BBC

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