News Headline Summary

According to sources initial Greek bond buyback offer expected around 25% of face value

- If successful, buyback could cut Greek debt by around 10% of GDP.
- Greece will need around EUR 8bln for buyback.
- Greece could finance buyback through ECB profits and bailout funds.
- Bond buyback offer would aim for 50% acceptance rate.

Analysis details (18:38)

- This is similar to reports yesterday that Germany floats idea for Greek debt buy-back at EUR 0.25 per EUR for half of outstanding privately held debt according to a source. The voluntary proposal would leave private sector holders of Greek debt who have already seen most of their investments wiped out with just cents per EUR, even while Eurozone countries demand 100% of their principal back for official loans.

20 Nov 2012 - 18:29 - Fixed Income Economic Commentary - Source: Newswires

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