|
Greece is borrowing €10 billion to execute the buyback, with the aim of reducing its public debt by €21.1 billion. The average offer to buy back the bonds is 33.8 per cent of the principal amount, which means that Greece needs to spend €11.2 billion in total. It is not clear where the extra €1.2 billion will come from.
Greece’s lenders had estimated that the country’s debt would be reduced by 11 per cent but in fact the difference will be less than 10 per cent.