Greece surprised the financial markets today with its voluntary offer to buy back its sovereign debt, according to Reuters citing a senior finance ministry official. The Public Debt Management Agency (PDMA) is expected to publish the invitation for the buyback on Monday, with the IMF and Eurogroup finance ministers agreeing earlier this week to conduct the buyback by mid-December in order to help make Greece's debt more manageable.
Investors were somewhat concerned over the potential impact on Greek banks, however, which may be forced to participate in the buy back. Meanwhile, Germany and other creditor nations could be forced to contribute to the buy back in amounts that could reach 9 billion euros, according to some sources, adding to the existing bailouts to the troubled nation.