Reissuing of Greek bonds
The Ministry of Finance is expected to proceed in reissuing of the bonds, with which Greece has returned to international markets after nearly four years of absence.
According to Reuters, this reissue will be made within the next two weeks. The Public Debt Management Agency (PDMA), according to reports, wants to convert Treasury bills (which the greatest part of them is in the hands of the banks), to bonds with three or five years duration.
The government does not issuing new bonds because it has not the "green light" from the Troika, so thought to increase the versions of April and July. In essence, this is an "exchange" of Treasury bills to bonds that already traded.
Behind the moves for stabilization of bonds market (Treasury prefers the bonds to be in the hands of Greek banks rather than foreign), there is another ... 'underground' thought: new indirect lending. How is this done?
Our country, according to the agreement with the troika, cannot issue as many treasury bills as it wants. There is a certain limit to the duration of the Treasury (three and six months) and to their amount. That is, the Treasury bills which are in the "air" and are about to be auctioned, should not exceed 17 billion, each time.
Thus, by exchanging Treasury bills to bonds, opens the way for the economic team to issue even more Treasury bills.
And one more thing: the Deputy Minister of Finance, Ch. Staikouras, had stated in 2014 that it would not be issued a new debt through Treasury bills, but will be updated each time ending, with other treasury bills.
So, in this way they will meet the commitment of the Ministry of Finance, as there will be no new debt, but a ... restructuring! The amount of these revisions will reach up to 1 billion, i.e. more or less, the money that the Treasury needs in order to cover occasional "holes", as the judicial decisions.
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