These bonds—originally issued on March 9, 2012, as part of the effort to ease Greece’s unsustainable debt burden—were tied to the country's economic performance and scheduled to mature in October 2042. While their notional value totals €61.7 billion, they only paid out under certain conditions tied to GDP growth.
Although those economic benchmarks have not been met over the past 13 years, the risk of future payouts loomed large. Starting in 2027, if growth targets were achieved, the Greek state could have been liable for up to €350 million in annual payments through 2042.
To avoid that possibility, the PDMA executed a strategic early buyback, taking advantage of a clause in the bonds that allows repurchase. The buyback was completed quietly and without market leaks, enabling Greece to retire the securities at a favorable price of €252.28 per 1,000 units (with a nominal value of €100,000). The total cost to the Greek state will be just €155 million—an amount significantly lower than the potential long-term liability.
Settlement is scheduled for May 14, 2025, and the full cancellation of the bonds will be finalized by the end of the year.
This calculated move effectively closes one of the last remaining files from Greece’s sovereign debt crisis and the wider eurozone crisis of the early 2010s. Nearly 13 years after the PSI deal reshaped global perceptions of sovereign risk in Europe, Greece has now turned the page—quietly, strategically, and on its own terms.
