Greek debt buy-back has gone well: Berlin

12th December 2012, Comments 0 comments

A Greek debt buy-back scheme designed to release much needed EU-IMF bailout funds appears to have progressed smoothly, a German finance ministry spokeswoman said on Wednesday.

"Everything looks as though it went well, very well," spokeswoman Marianne Kothe told a regular government news conference.

The individual figures are now being examined and will form part of a so-called debt sustainability report that eurozone ministers will consider before releasing the funds, added the spokeswoman.

Earlier Wednesday, Athens announced it had attracted offers worth 31.9 billion euros ($41.2 billion) under the debt buy-back scheme.

But the country's debt management agency said that to complete the procedure, it would need 11.29 billion euros in funds from the European Union's EFSF rescue fund overall, 1.29 billion euros more than originally allocated.

The buy-back aims to cut Greece's debt by about 20 billion euros and is vital to unblock pending loans from the European Union and International Monetary Fund, which were frozen earlier this year owing to reform delays.

The IMF and the eurozone have agreed to release 43.7 billion euros in rescue loans in four instalments to enable Greece to avoid bankruptcy provided Athens carries out the bond buy-back programme successfully.

© 2012 AFP

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