According to the Public Debt Management Organization
Its borrowing needs amount to 18.9 billion euros Greek State for 2024. Of these, as foreseen in the “Funding Strategy” published by the Public Debt Management Organization in English, 10 billion euros will be covered by bond issues, 4.1 billion euros will come from other sources such as the European Bank Investments, the NGEU, etc., 1.6 billion euros will come from the sale of shares and other assets of the State and 3.6 billion euros from the liquid assets available to the State. ODDIX estimates that the so-called liquidity cushion available to the Greek State amounts to 30 billion euros.
The borrowing needs of the State concern 5.463 billion euros for the refinancing bonds that expire, 4.8 billion euros for the repayment of interest and other individual obligations, 12 billion euros for the final payment of interest on promissory notes and 3.589 billion euros for liquidity needs in specific periods of time in 2024, while from the total needs 6 .9 billion euros due to estimates of the primary surplus.
ODDIX, reviewing the past year, points out the significant decline in Greek bond yields recorded during the year as well as their outperformance compared to all other Eurozone countries, it was pointed out in APE BEE.
More specifically, the spread of the 10-year Greek bond against the corresponding German bond fell to a 26-month low of 115 basis points in mid-December 2023, with the spread over the 10-year Spanish bond limited to 20 basis points, while a negative spread against the corresponding Italian bond is recorded on a sustained basis from May 2023 (around -50 basis points in mid-December 2023).
Regarding the so-called sustainability of the Public Debt, the ODDIX points out that Greece benefits from a favorable debt structure as more than 70% of the debt stock is held by the so-called creditors of the official sector (EU member states and transnational bodies). In addition, the debt has a long-term maturity profile and low interest rates, as 100% of the debt is at a fixed rate, thus limiting interest rate risks.
In addition, the active debt management of the IDF has allowed Greece’s debt portfolio to be temporarily hedged against interest rate risk, which will further contain funding costs in the future.
