BERLIN Dec 12 Smaller than expected interest in
the Greek debt buyback that closed on Tuesday means that to
reach its debt reduction targets Athens may also offer to
repurchase bonds issued before the debt restructuring in March,
a euro zone document showed.
The document, dated Dec. 12, said the Greek buyback of debt
restructured in March amounted to 31.9 billion euros, which
would reduce the Greek debt-to-GDP ratio by 9.5 percentage
points by 2020.
When plans for new Greek debt-reduction steps were agreed
among euro zone finance ministers on Nov. 27, the expectation
was that the buyback would reduce the debt by 11 percent of GDP.
The buyback, along with other steps, is to cut Greek debt to
124 percent of GDP in 2020, from almost 190 percent expected
next year without such steps.
The document said the 1.4 percent of GDP reduction in debt -
the amount by which the buyback fell short of earlier
expectations - could be obtained through a buyback of bonds
still held by investors who refused to participate in the Greek
debt restructuring earlier this year.
"Euro area member states will consider additional further
measures and assistance, if necessary, to bring the total yield
of additional contingency measures to 1.4 percent of GDP,
provided that Greece meets the 2013 primary balance target as
defined in the MoU (memorandum of understanding)," a footnote in
the document said.