Greece's bank to swap USD35bn bond

(MENAFN) Greece's banks are being asked to swap almost USD35bn in floating-rate bonds for 30-year, under a euro-area plan to shield Athens from future interest rate increases.

However, the recent EFSF holdings of Greek banks declined due between 2034 and 2046, the fixed-rate notes will expire in 2047, which will cut Greece"s interest rate risk.

On the other hand, it may also come at a cost for its four systemically important lenders, which could be left with securities that are more difficult to trade.

In addition, there are discussions going on as to proposals, which will enhance the sustainability of the Greek debt.