Greek Bond Buyback Hostage to Below-Market Prices: Euro Credit

Greek efforts to ease indebtedness by repurchasing its own bonds at less than their face value depend on investors accepting below-market prices rather than holding out for an improved offer.

Greece next week will unveil plans to tender for bonds issued in its 100 billion-euro ($130 billion) restructuring this year, Finance Minister Yannis Stournaras said today. The prices are “expected to be no higher than those at the close” on Nov. 23, euro area finance ministers said yesterday. Those notes trade at about 29.5 cents on the euro, up from 28.1 percent last week, according to brokerage Exotix Ltd. in London.