Home Greece Greek state to issue bonds worth 10 billion euros in 2024

Greek state to issue bonds worth 10 billion euros in 2024


The Greek state’s borrowing needs for 2024 reach 18.9 billion euros, the Public Debt Management Agency (PDMA) said on December 22.

Of this total, 10 billion euros will be covered by issuing bonds, and 4.1 billion euros will come from other sources such as the European Investment Bank, 1.6 billion euros will come from selling of shares and other state assets, and 3.6 billion euros from the state’s liquid assets. The Agency estimated that the cash buffer available to the state comes to 30 billion euros.

The state’s borrowing needs include 5.463 billion euros for refinancing maturing bonds; 4.8 billion for the repayment of interest and other individual liabilities; 12 billion for the definitive redemption of promissory notes; and 3.589 billion for liquidity needs at specific time periods in 2024. A total of 6.9 billion is not included in the total of needs due to the estimates for primary surplus.

In its overview, the PDMA said its funding strategy for 2024 will focus on the continuous presence in international debt markets, accompanied by the reduction in the level of public debt, proactive management of the debt portfolio and the preservation of a significant cash buffer.

Its debt and funding strategy focuses in four directions: Enhancing market access (improve a tradable and liquid yield curve; enhance the investor base towards more real money players; maintain regular market operations), containing funding costs (bring the credit spread of the GGB curve in line with peers; limit interest rate and FX risks; and limit refinancing risks), and managing liquidity (cash reserves of both the Greek state and general government entities).