Greece to Spend New Loans on Debt Buyback

ATHENS, November 27 (RIA Novosti) – Greece will use fresh loans for debt buyback at discounted prices, Greek Finance Minister Yannis Stournaras said on Tuesday after eurozone finance ministers and the IMF reached a deal on a much-needed bailout for the country.

“Greece plans to complete the debt buyback by December 13,” Stournaras told Greek TV.

After their third meeting in three weeks, that lasted about 13 hours, the eurozone finance ministers and the IMF patched up their differences over long-delayed bailout aid to debt-laden Greece and agreed to unlock loan tranches totaling 43.7 billion euros ($56.4 billion).

Most of the funds are expected to be disbursed in December, with further payments in the first quarter of next year on condition that Greece continues to deliver on its austerity pledges under the bailout plan.

Stournaras said the decision by the Eurogroup and the IMF to provide over 43 billion euros in fresh loans, extend loan maturities, lower interest rates on loans and allow sovereign debt buyback on the market at discounted prices will put an end to speculation about Greece leaving the eurozone or defaulting.

“Today’s decision by the Eurogroup and the IMF is important because it keeps Greece in the eurrozone and enables it to exit the vicious circle of recession and excessive debt and helps it reduce its debt,” Stournaras said.

The deal will help Greece reduce its state debt from about 190 percent of GDP in 2014 to 124 percent of GDP by 2020.

The news of the deal that clears the way for Greece’s next tranche of bailout funding briefly sent the euro higher against the US dollar in Tuesday trade to the level of $1.30.


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