Greece details bond swap offer-papers
* Greece provides new details on bond swap -papers
* Officials say talks ongoing, scheme not finalised
ATHENS, Dec 5 (Reuters) - Greece is offering private
creditors a 4.5 percent coupon on some new paper as part of a
bond swap to cut its debt by 50 percent, Greek media said on
Monday, revealing new details of the plan which government
officials say has not been finalised.
The heavily-indebted country is keen to wrap up talks with
creditors on the so-called private sector involvement (PSI+)
which is part of a bailout agreed at an Oct. 26 summit of
European Union leaders to avoid bankruptcy.
A successfully concluded PSI is key to meeting next year's
target to cut the budget gap to 5.4 percent of GDP from 9
percent this year and attain a primary surplus. The bond swap
would save 5.1 billion euros in interest payments in 2012.
Daily newspapers Imerisia on Monday and Kathimerini on
Sunday said Greek authorities proposed that every 100 euros of
bonds maturing up to 2014 be exchanged for 30 euros of new
20-year, 4.5 percent coupon paper with a 10-year grace
period, combined with 20 euros in EFSF bonds.
Similarly, for every 100 euros of Greek bonds maturing from
2015 to 2020, Athens proposed 35 euros in new 30-year debt
securities with a 4.5 percent coupon and a 20-year grace period
along with 15 euros in EFSF bonds.
And for bonds due after 2020, private creditors are offered
40 euros in new 4.5 percent 30-year paper with a 30-year grace
period and 10 euros in EFSF bonds, Kathimerini said.
The papers said that based on the proposal, the new Greek
bonds would be governed by Greek law, while private creditors
want to swap bonds at 50 percent of face value with new 30-year
instruments bearing an 8 percent coupon.
Finance Ministry officials would not comment on the reports
and said talks were ongoing.
"There are various thoughts in the talks with creditors,
there is no final outcome, consultations are continuing," a
government official close to the negotiations told Reuters on
condition of anonymity.
"The final offer that will satisfy the parameters agreed in
October -- to reduce the country's debt by 100 billion euros and
get to a debt to GDP ratio of 120 percent by 2020 remains to be
seen," the official said.
Greece's new unity government aims for a primary budget
surplus -- revenues exceeding spending when debt maintenance
costs are excluded -- of 1.1 percent of GDP next year to start
chipping away at its debt load, which is seen reaching almost
200 percent of gross domestic product in 2012 without the PSI.
On Sunday, Finance Minister Evangelos Venizelos told
lawmakers during a parliamentary debate on next year's budget
that Athens must achieve full private creditor participation in
the PSI+ to avoid a funding gap.
"Talks in the next months on the full implementation of the
private sector involvement (PSI) to reduce Greek debt and render
it viable are difficult, delicate and not without risk,"
Venizelos said.
(Reporting by George Georgiopoulos; editing by Anna Willard)
((
[email protected])(+30210 337
6437)(Reuters Messaging:
[email protected]))
Keywords: GREECE BONDS/