Greece's debt buyback is a cause for concern, says Citi. If the "voluntary debt buyback fails to produce the desired debt savings, this could undermine the credibility of the Greek debt restructuring plan," it notes. With Greek Finance Minister Yiannis Stournaras saying the buyback would cost about EUR13 billion to 14 billion at an indicative level of 28c to 30c, it would imply the Greek government are expecting a participation rate of more than 70%. Citi's Valentin Marinov says that if investors deem the mooted terms not overly generous, leading to abstentions, the government "may not achieve the debt reduction they are hoping for and thus may have to resort to coercive measures involving CAC and likely to trigger CDS."
Find us on Google+
No comments:
Post a Comment