BRUSSELS, Dec 11 (Reuters) - Greece’s debt buyback attracted bids totalling 31.8 billion euros, but the price paid for the bonds will not be sufficient to reduce the debt burden to 124 percent of GDP by 2020, a euro zone official familiar with the auction said.
The source said the average price was 33.5 cents on the euro, slightly above what was expected, meaning that there was a shortfall of about 450 million euros. Senior euro zone finance and treasury officials discussed the results on a conference call earlier on Tuesday.
The official said the operation was sufficient to reduce Greece’s debt-to-GDP ratio by 9.5 percentage points, below the originally targeted 11 percent.
That means that debt as a proportion of GDP will only fall to about 126.6 percent by 2020, above the goal agreed with the IMF of 124 percent.
Several sources said euro zone finance ministers would hold a teleconference call at 1630 GMT to decide what further steps to take to complete the operation and reduce the debt level to the agreed target. (Reporting by European bureaus, writing by Luke Baker; editing by Rex Merrifield)