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  • The ‘Washington deal’ on Greek debt, 10-year bond planned

    The finance ministry is planning on issuing a ten-year bond, after a deal between Greece’s creditors and partners in Washington to announce debt relief measures for Greece before the end of June.

    ΤοΒΗΜΑ Team

    The finance ministry is planning on issuing a ten-year bond, after a deal between Greece’s creditors and partners in Washington to announce debt relief measures for Greece before the end of June.

    The second part of the deal is that the European Stability Mechanism will monitor implementation of reforms, and will have the last word on the return to Athens of profits from Greek bonds held by the ECB and eurozone central banks.

    Depending on market conditions, the issuance of the new bond may be put off from the late May target date until after the 22 June Eurogroup. The government hopes that this might give it a quick victory in terms of ensuring a successful return to the markets.

    Another quick victory as Athens sees it is the sale of Hellenic Gas Transmission System Operator (DESFA) and the privatisation of Hellenic Petroleum (ELPE), as the two moves are expected to bolster market trust.

    As for the final arrangement on debt relief, there is discussion on how the ECB’s and central banks’ profits from Greek bonds might be disbursed to Athens. One proposal is to link it to reforms and pay Greece one billion annually from 2019-2022.

    Secondly, debt relief may be directly linked to the course of GDP, as France has proposed

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