Greek finance ministry announces bond swap deal worth four billion euros

A finance ministry decision to propose a bond swap deal to bondholders – holders of Greek state debt resulting from a PSI arrangement – is creating more space for Greek bond purchases by the European Central Bank.

The Public Debt Management Authority on Monday called on bondholders of state securities maturing in 2023, 2024 and 2025 to agree to a swap with new bonds maturing in 2027, 2033, 2037 and 2042.

The swap deal covers state bonds of a nominal value of around four billion euros. The deal will allow the ECB to buy more Greek bonds in the framework of its PEPP program. The eurozone’s central bank has already purchased Greek state bonds of a nominal value of 30 billion euros so far.

On the domestic electronic secondary bond market, the 10-year Greek bond yield was 1.32 percent, with the spread against the 10-year German Bund at 1.71 percent. The German Bund yielded -0.39 percent. Turnover was 154 million euros, of which 54 million were buy orders