BRUSSELS (Reuters) – The Greek government could discuss the timing of a possible new bond issue after next week's meeting of euro zone finance ministers which can be supposed to select debt help measures for Athens, junior economy minister Alexis Charitsis said.
Heavily indebted Greece, inwardly smile at of bond markets this season, has returned for the markets twice within the last Calendar year so as to produce a cash buffer that will reassure investors after its third international bailout program ends up in August.
"All of our work is centered on the Eurogroup within the 21st (of June) where we have a legal contract on help with debt," Charitsis told a news conference in Brussels on Wednesday.
Asked whether Greece could issue new bonds prior to a end of its bailout program, he said: "Almost every other discussions happen following the 21st."
The Eurogroup of euro zone finance ministers will talk about possible new help with debt measures for Greece in Luxembourg on June 21.
EU officials have repeatedly said the meeting will be fundamental to seal Greece's financial future, as decisions should be made for the make use of about 40 billion euros ($47 billion) that remains unspent in the 86 billion-euro euro zone-funded bailout program which expires on Aug. 20.
Officials are looking for there are several options to cut back debt servicing costs for Athens, including an extension box of maturities and charm periods up to 10 years on about 130 billion euros lent to Greece beneath second bailout. One official said a compromise might be to extend maturities by between 5 and A decade.
They can also be considering a buy-out of expensive loans worth more than 20 billion euros in the International Monetary Fund and euro zone central banks due over the next decade.
They could be replaced with cheaper loans from the European Stability Mechanism, the euro zone bailout fund. Germany, the bloc's largest economy, is careful of this choice.
Greece can also be planning to get new loans in a month’s time around 11 billion euros which might be familiar with increase its cash buffer to handle possible future market turmoil, a senior Eurogroup official said on Wednesday.
The buffer would cover Greece's borrowing needs for the upcoming 18 to 24 months. It may possibly be about 20 billion, officials said, including money raised by Greece over the markets.
That would facilitate Greece's full go back to market financing, and can allow Athens to issue bonds when market the weather is better and yields lower, covering the next 18 months.
Athens returned to market financing with a five-year bond in July 2019 and issued a seven-year bond in February, which resulted in your money buffer.
Reuters exclusively reported a while back that Greek authorities had chose to break the rules by a number of months plans for your new bond issue resulting from increased political risk in Italy that’s got rocked euro zone debt markets.