Greece issues 30-year bond to smooth debt costs News Staff

ATHENS, Greece — Greece on Wednesday launched a 30-year government bond auction, hoping to take advantage of low interest rates to improve its debt profile and offset some of the impact of the coronavirus pandemic on the country’s public finances.

The results of the auction are due to be announced later Wednesday.

A steep recession in 2020 and pandemic relief costs pushed Greece’s debt-to-gross domestic product ratio to over an estimated 200% last year.

In late January, Greece raised 3.5 billion euros with a 10-year bond issue with a yield of close to 0.8%.

Athens is also planning to repay part of its bailout debt to the International Monetary Fund ahead of schedule to reduce annual debt servicing costs.

The early repayment worth some 3.3 billion euros would cover nearly two-thirds of the outstanding loans to the IMF, and follow a similar repayment worth 2.7 billion euros in late 2019.

The Associated Press

Leave a Reply

Your email address will not be published. Required fields are marked *