Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / World/  How much Greece owes to international creditors
BackBack

How much Greece owes to international creditors

Greece, which may default on an IMF debt repayment due on Tuesday after talks with creditors broke down, owes its official lenders $271 billion

Private investors hold €38.7 billion of Greek government bonds following a major write-down and debt swap in 2012 that reduced the Greek debt stock by €107 billion and the value of private holdings by an estimated 75%. Photo: EyesWideOpen/Getty ImagesPremium
Private investors hold €38.7 billion of Greek government bonds following a major write-down and debt swap in 2012 that reduced the Greek debt stock by €107 billion and the value of private holdings by an estimated 75%. Photo: EyesWideOpen/Getty Images

Brussels: Greece, which may default on an International Monetary Fund (IMF) debt repayment due on Tuesday after talks with creditors broke down, owes its official lenders €242.8 billion ($271 billion), according to a Reuters calculation based on official data, with Germany by far the largest creditor.

That figure includes loans made under two bailouts from European governments and the IMF since 2010—worth a nominal €220 billion so far, of which some has been repaid—as well as Greek government bonds held by the European Central Bank (ECB) and national central banks in the euro zone.

Private investors hold €38.7 billion of Greek government bonds following a major write-down and debt swap in 2012 that reduced the Greek debt stock by €107 billion and the value of private holdings by an estimated 75%.

The Greek government has also issued €15 billion in short-term Treasury bills, mostly to Greek banks.

Here is a breakdown of the country’s foreign debt stock:

IMF: Greece was promised a total of €48.1 billion by the IMF, of which 16.3 billion was still to come by March 2016 if Athens successfully completed the second economic adjustment program. It had serviced and repaid loans on time up to this month, when it used an obscure IMF provision to bundle together four payments totaling €1.6 billion for payment by the end of June. The older IMF loans carry an interest rate of 3.5%, higher than the euro zone rescue fund charges.

ECB: The ECB owns roughly €18 billion of Greek bonds, which would probably be worth a fraction of their face value should the country leave the euro zone, with €6.7 billion maturing in July and August.

Beyond a default on Greece’s national debt, any exit of Greece from the euro zone would lumber the European Central Bank with a huge bill for lost credit. ECB President Mario Draghi recently said that Greek banks had tapped €118 billion of central bank liquidity. That includes 89 billion in what is known as Emergency Liquidity Assistance (ELA). That remains the responsibility of the country’s central bank but only if Greece stays in the euro. Were it to leave, the bill would rebound on other euro countries, including Germany.

In addition about €45 billion of banknotes in Greece represents another liability, being a claim that the wider Eurosystem of central banks would be obliged to honor.

The euro zone: Euro zone governments gave Greece €52.9 billion in bilateral loans under the first bailout agreed in 2010, known as the Greek Loan Facility. Under the second bailout agreed in 2012 Athens has so far received €141.8 billion from the euro zone’s financial rescue fund. It had been due a further €1.8 billion by 30 June if it met conditions but barring major surprises that is off the table.

Of the biggest euro zone members, Germany’s exposure for the two bailouts totals €57.23 billion, France’s is 42.98 billion, Italy’s is 37.76 billion and Spain’s 25.1 billion. That is in addition to their contributions to the IMF loans, commensurate with their respective quotas in the global lender.

Euro zone countries have already extended the maturities of their loans to Greece from 15 to 30 years and reduced the interest rates on some to just 0.5 basis points above their borrowing cost. They also granted Greece a 10-year moratorium on interest payments on the second bailout loan from the euro zone rescue fund.

Greece has asked for further debt relief from the Europeans, a move supported by the IMF. But euro zone governments have said they would only discuss that if Athens further tightens its budget. Reuters

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 29 Jun 2015, 12:36 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App