Greece plans to borrow between 10 billion and 12 billion euros in 2022 through the issuance of new short-term and long-term debt, but also the first green bond that the country will issue, according to two government sources who spoke to Reuters on Monday.
Greece issued 5-year, 10-year and 30-year government bonds this year, raising a total of about 14 billion euros, benefiting from the extremely low interest rates achieved thanks to the European Central Bank’s asset purchase program.
“We plan to raise about 10-12 billion euros next year. We will also proceed with the issuance of our first green bond,” he said. a government official told the agency.
Greece, which is rated “BB” by Standard & Poor’s, returned to international bond markets in 2017 after years of foreclosure during the ten-year debt year from which the country exited in August 2018.
The country aims to reduce its debt-to-GDP ratio – estimated at 197.1% after a sharp rise during the pandemic – and maintain the “cushion” of funds it has “built” from unused loans in the bailout program and funds raised from the markets.
“We will issue a new 10-year bond and [ομόλογα] with other expirations, “says one second government official, adding that the country will make its debut with the first green bond probably in the last quarter of 2022.
He did not give further details on the size of the issues.
Greece has amassed a cash reserve of around 40 billion euros, which covers it for debt maturities for at least the next two years without having to borrow from the markets, provided the interest-bearing bills continue to be covered.
Following its exit from the rescue packages in 2018, Greece relies exclusively on international markets to cover its financing needs, Reuters notes.
It also carries an earlier statement by the Minister of Finance, Chr. Staikoura that Greece is considering repaying Greece’s bilateral loans with the Eurozone countries and the International Monetary Fund earlier.
“It will take place early next year,” the first official told Reuters, without elaborating.
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Source From: Capital
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