ATHENS, Nov. 15 (Xinhua) -- Greece's Finance Ministry announced on Wednesday the launch of a bond swap procedure worth 29 billion euros (34.3 billion U.S. dollars) with an aim to improve liquidity in the second bond market and facilitate the country's next exit in capital markets.
Holders of 20 small issues of Greek state bonds are offered until Nov. 28 the chance to exchange them with new bonds of 5-25 year duration maturing until 2042, according to the official press announcement.
Under the swap deal, the interest rate of the new bonds will be fixed and defined in a way to have neutral impact both to bondholders and the Greek state, Greek Public Management Agency officials told Greek national news agency AMNA.
The main idea of the plan is that both sides will not suffer any financial damage nor gain any profit from the transaction.
The swap deal is expected however to "normalize" a yield curve in the bond market, paving the way for Greece's next test bid to raise funds from international capital markets, which according to sources, is expected in early 2018.
Under timetables agreed with international creditors, the third Greek bailout since 2010 ends in mid 2018 and Greece will fully return to markets next year.
The debt-laden country is shut out by international markets since the start of the acute crisis seven years ago and relies on the bailouts. (1 euro= 1.18 US dollars)
