Greece is conducting an auction on Wednesday for the re-opening of the GGB 3.875 percent bonds maturing on March 12, 2029, in book entry form under ISIN GR0124035693, the Public Debt Management Agency (PDMA) announced on Tuesday.
Up to 250 million Euro will be auctioned with settlement scheduled for July 24, 2024.
The move aims to satisfy investor demand as well as facilitate the efficiency of the secondary market operation.
Participation in the auction is limited to Primary Dealers (PDs), who can submit up to 5 competitive bids each through the Electronic Trading System (HDAT) by 12:00 p.m. local time on July 17, 2024.
Only competitive bids up to the auctioned amount will be accepted and will be allotted at the cut-off price determined in the auction. The results of the auction will factor into the evaluation of PDs, with no commissions payable for the bonds auctioned.
Greek debt’s “rapid decline”
Last week, Scope Ratings GmbH (Scope) affirmed Greece’s long-term issuer and senior unsecured debt-category ratings at BBB, in both local and foreign currency, revising the Outlooks to Positive, from Stable.
The decision was influenced by the country’s declining public debt, improved banking-system resilience and favorable momentum for structural reforms.
“This latest upgrade once again confirms that the Greek government’s policy yields results and the good prospects of the Greek economy,” commented Government spokesperson Pavlos Marinakis.
“Scope’s report highlights, among others, the rapid reduction of public debt, the achievement of strong surpluses, the reduction of non-performing loans combined with disinvestment from the systemic banks and the adoption of structural reforms that strengthen the resilience and growth potential of the economy,” he added.
In December, the PDMA had revealed that Greece plans to cover more than half its borrowing needs for 2024 by issuing new bonds worth ten billion euros. The country’s total borrowing needs for 2024 were estimated at 18.9 billion euros at the time.
Greek state budget surplus announced for first half of 2024
In related news, the Greek finance ministry on Monday reported that the state budget primary balance for the Central Administration on a modified cash basis amounted to a surplus of 2.9 billion euros in the first half of 2024.
The result poses against a primary surplus target of 1.204 billion euros and a primary surplus of 2.116 billion euros performed in the first half of 2023, the ministry observed. However, part of the difference in the primary balance surplus against the target, in cash terms, is not counted in the 2024 primary balance in fiscal terms.
For instance, the 159 million Euros relating to the Recovery and Resilience Facility revenues (RRF), do not affect the outcome in fiscal terms, while a significant part of the difference in tax revenues of 647 million Euros, is accounted for in the fiscal result of 2023.
Therefore, the primary balance in fiscal terms differs to the result in cash terms.
