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21 July 2011

Greece Financing Offer: Statement by the IIF board of directors


The Institute of International Finance Board announced today its Financing Offer for Greece. The programme offers a menu of new instruments to investors in order to mobilise voluntary participation of investors with a target participation rate of 90 per cent.

This will provide financing to Greece of €54 billion from mid-2011 to mid-2014 and a total of €135 billion from mid-2011 to end-2020.

Greece’s debt profile will be improved substantially with the exchange and roll-over programme extending average maturities of privately held claims from 6 to 11 years. The stock of debt will be reduced by €13.5 billion through the bond exchange programme and potentially by €24.3 billion (or 10.6 per cent of current GDP) including through a debt buyback programme (estimated to be €20 billion). The debt exchanges, lending and roll-overs will take place at rates that are broadly comparable to that being extended by the EU. The new instruments will have significantly longer maturities up to 30 years.

Chairman of the Board, Dr Josef Ackermann, stated: “This offer is part of a comprehensive package which involves a balance of interest for all parties. Greece will benefit from the improved EU terms, the support of the IMF, and the substantial financing and debt reduction coming from the private sector. The EU will benefit from the voluntary support by the private investor community and the very real prospect of drawing a line under this exceptional support for Greece. The private investor community will benefit from a more stable financial and economic environment.”

Press release



© IIF - Institute of International Finance


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