Greece plans to sell bonds to Greeks abroad as it eyes a return to international bond markets some time next year, the Greek finance minister George Papaconstantinou said on Wednesday.
We are talking at the moment and designing what is called a ‘diaspora bond’ to tap Greek money that is abroad and we feel that we will be quite successful.
Greece is keen to return to markets after plunging into a debt crisis last year, when its budget deficit hit 13.6 percent of GDP, driving borrowing costs to prohibitive levels and prompting a 110 billion euro bailout from the International Monetary Fund and European Union.
“We are talking at the moment and designing what is called a ‘diaspora bond’ to tap Greek money that is abroad and we feel that we will be quite successful,” Finance Minister George Papaconstantinou told Reuters Insider TV.
Analysts said details were needed to see what amount Greece could raise from a diaspora bond and what would make it more attractive than other Greek debt offerings.
Government officials said the diaspora bond was still in the planning stage.
“With Greek debt we are always talking of billions; it is more important to convince those who really have the money, European institutional investors, to purchase Greek debt instead of individuals.”
Source: Reuters