"We are discussing the repurchase of bonds at lower prices"

The discussion of the idea for the repurchase of Greek government bonds at lower than nominal prices, is worthy of note according to the Minister of Finance.

Answering a question during the World Economic Forum in Davos, Mr. Papakonstantinou spoke on the matter of repurchasing bonds at lower than nominal prices: “To do this, we need money and as such, this is only an unofficial discussion so far”.

The measure package to comprehensively address the European debt crisis, which is expected within the next two months, will improve the climate in international markets, the minister stated. “This will enable us during the year, maybe near the end, to return to the markets with a larger version of ourselves”, the minister said on Reuters Television, adding that the European Financial Stability Fund should possess more firepower and flexibility.

The idea of Hellenic bonds repurchasing from the secondary market, where current rates are lower than nominal,  in order to reduce public debt is being considered by Finance ministers of the Eurozone, according to a Reuters article.