The swapping of bonds from Greek debt restructuring dating back to 2012 and private sector involvement begins today with the issue of new securities following a statement issued by the Public Debt Management Agency (PDMA). The agency invited private bondholders to exchange those 20 bond series for five new issues before November 28th.
PDMA said that the aim is for the Greek yield curve to revert back to normal and to supply the market with a limited series of securities with objective of this redistribution is to “concentrate the debt in fewer and more marketable issues while allowing thousands of depositors who have been trapped in these issues since 2012 to liquidate their portfolios if they so desire with greater ease.”
Approximately 60% of the debt to be swapped is held by foreign hedge funds and the rest by Greek bondholders, such as the Common Fund of the Bank of Greece, the Greek social security funds, private bondholders and the local lenders.
The bond swap is not expected to result in an increase in the country’s overall debt according to the Kathimerini.