Finance Ministry mulls bond issue swap, but not now

The government is considering the swap of bond issues for new ones, but no such decision has been taken so far, according to sources.

The Finance ministry will have to proceed with the swap of bond issues by the end of the programme in order to improve the bond yield curve and smooth debt payments over the next years.

Reuters news agency earlier on Thursday reported that Greece is considering swapping 20 small bond issues for four or five new ones as it prepares to exit its international bailout and resume normal financing operations.

According to Reuters, which cited government sources, the 20 bonds were issued in 2012 in a voluntary scheme whereby private bondholders took a 53.5 percent haircut – or value reduction — on their investment.

The same sources said that the bond swap has been on the table for a long time, but as they point out, it depends on the international climate and other critical factors. The same executives noted that this is a complex process with many parameters and suggested that it is not the right time for such decisions.