Greek state to issue bonds worth 10 billion euros in 2024

The Public Debt Management Agency (PDMA) announced that the Greek state's borrowing requirements for 2024 amount to 18.9 billion euros. Out of this total, 10 billion euros will be covered through bond issuance, 4.1 billion euros will be obtained from sources such as the European Investment Bank, 1.6 billion euros will be generated from the sale of shares and other state assets, and 3.6 billion euros will come from the state's liquid assets. The PDMA estimates that the state's cash buffer currently stands at 30 billion euros.

The borrowing needs encompass various aspects, including 5.463 billion euros for refinancing maturing bonds, 4.8 billion euros for interest repayments and other liabilities, 12 billion euros for the definitive redemption of promissory notes, and 3.589 billion euros for liquidity requirements during specific time periods in 2024. An additional 6.9 billion euros, not included in the total borrowing needs, is attributed to projections for primary surplus.

The PDMA outlined its funding strategy for 2024, which centers on maintaining a consistent presence in international debt markets, reducing the level of public debt, proactively managing the debt portfolio, and preserving a substantial cash reserve.

The debt and funding strategy revolves around four key directions: enhancing market access by improving the tradable and liquid yield curve, diversifying the investor base towards real money players, and continuing regular market operations; containing funding costs by aligning the credit spread of the Greek Government Bond curve with peers, limiting interest rate and foreign exchange risks, and mitigating refinancing risks; and managing liquidity by maintaining cash reserves for both the Greek state and general government entities.