(MENAFN) In an attempt to lessen its swelling debt and unfreeze long-delayed aid, Greece announced that it would spend USD12.98 billion to buyback bonds, reported Reuters.
It said that it would set a price range above market expectations in order to tempt enough investors.
The move is crucial to the efforts of the country's foreign lenders to put Athens' debt back on a sustainable footing, moreover, its success is important to release funding the debt-ridden country needs to avoid a bankruptcy.
The buyback will be carried out via a modified Dutch auction that introduces an element of competition among investors.
If a bondholder in a Dutch auction attempts to get a price close to the upper limit, there will be a risk that he or she may be left out if the buyback amount is filled at lower prices. There will be one settlement price for each series of bonds.
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