Greece Friday extended to April 4 a deadline for its creditors to swap 8.1 billion euros in debt as part of a historic bond exchange which has already erased nearly a third of its debt mountain.
Holders of Greek debt issued under foreign law had until 2000 GMT to join the so-called Private Sector Involvement (PSI) which was hammered out in February after months of negotiations with global banks and eurozone states.
But as the deadline expired the Greek finance ministry issued a statement saying creditors would have two more weeks to decide.
“The Hellenic Republic has decided to extend to April 4 at 1900 GMT the deadline for holders of Greek foreign-law bonds and of bonds issued by state enterprises and guaranteed by the state,” a statement said.
The first phase of the swap, involving bonds issued under Greek law, was completed on March 12, cancelling more than 94.8 billion euros in near and mid-term debt in return for incentives and longer-term maturities.
Out of around 27.2 billion euros’ worth of bonds and state utility loans guaranteed by Greece under foreign law, holders of 19.1 billion euros have already opted to join the initiative.
Debt holders received new bonds with a face value equivalent to 31.5 percent of the face amount of the debt exchanged, plus 24-month notes from the European Financial Stability Facility, the eurozone’s current rescue fund.
Holders also received securities linked to Greek output.
After Friday’s expression of interest ends, the bonds will be exchanged on April 11.
The Greek bond swap is intended to help Greece meet a wave of debt repayment deadlines this year, and is a key part of a eurozone-IMF rescue to enable the country to rebuild its economy.
(source: AFP)
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