Greece proposes bond rollover to cover 2014 funding gap -paper
ATHENS Oct 13 (Reuters) - Greece has proposed to its international lenders that it rolls over 4.4 billion euros ($6 billion) of outstanding bonds to help to cover a funding shortfall next year, Greek daily Kathimerini reported on Sunday without citing sources.
Twice-bailed out by the European Union and International Monetary Fund, Greece has been kept afloat by 240 billion euros in financial aid since 2010.
Under its latest bailout programme, Athens will be financed until the second half of 2014, when it hopes to tap the bond markets after being excluded since 2010. Its lenders are also expected to decide on a third bailout for Greece in November.
The IMF and Greece estimate that Athens faces a funding gap of nearly 11 billion euros for 2014-15. The European Commission puts the gap at 3.8 billion euros for 2014 alone, while the IMF estimates it will be 4.4 billion euros.
Kathimerini said that Athens wants to roll over 4.4 billion euros in bonds due next year rather than paying them off to help cover the gap. Athens issued the bonds in 2009 to provide liquidity support for its banks, which were battered by the debt crisis.
The newspaper said that the EU Commission and the European Central Bank, which bought Greek bonds during the crisis, have raised concerns over the proposal but Greece hopes they will give their approval.
The Greek finance ministry declined to comment on the report. ($1 = 0.7373 euros)
(Reporting by Angeliki Koutantou; Editing by Karolina Tagaris and David Goodman)
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