FinMin: Bond buyback and reopening scheme positively affects state coffers, systemic banks

Greek public debt fell by around 620 million euros while the Greek state drained liquidity of around 2.0 billion euros through the buy back and reopening of bonds with Greek systemic banks. These were long-term securities maturing in 2050 and essentially are the reopening of a 30-year bond offered through a private placement in January 2020. These transactions also helped participating banks to record a significant increase in profits and capital.

Commenting on the transaction, Finance Minister Christos Staikouras said that beyond dealing with the pandemic, the government is steadily focusing on further improving debt sustainability indicators, preserving a safe level of state reserves and making a prudent and rational management of cash liquidity.

“ During the last two months, the Finance ministry and the Public Debt Management Authority completed in full transparency the buy back and reopening of existing state bond issues with Greek systemic banks, member of the Greek state’s group of primary dealers,” the FinMin said.