The derivative began life after a series of swap deals between the Greek state and Goldman Sachs around time the country’s entry into the euro area, later gaining notoriety as a symbol of how Greece tried to hide the true amount of its public debt. Goldman later securitized the swaps and sold Titlos to National Bank of Greece.
The Public Debt Management Agency bought back the swap by issuing National Bank with three bonds worth 3.3 billion euros ($3.7 billion), according to one of the people. By retiring 4.04 billion euros associated with Titlos, Greece achieves a net reduction of its public debt of 740 million euros.
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