Troika and markets await the election results

The lenders are preparing a "truth test" for the next government that will emerge from the elections. Just four days after the polls close, the Troika must ratify any outcome, giving the OK to Greece to collect the last tranche of the first PSI loan.

The Finance ministry expects a tranche of 5.3 billion euros on May 10, which will be used to pay the maturing bonds and primarily those of the ECB.

The Troika may stall the tranche payment, depending on the political situation or the difficulty of forming a government. But only briefly, because the mystery bond of 450 million, the holders of which have not accepted the haircut, ends on May 15. This amount is included in the 5.3 billion and if it is not collected by then, it will create a problem with payments.

It remains unknown how these bondholders will eventually be dealt with. The decision whether they will be paid or forced to receive the haircut will be made by the new government in consultation with the Troika and our European partners, since it is an important issue that can destroy the PSI by causing a credit event and payment of premiums and risks to those who bought the CDS, or whet the appetite of other bondholders to refuse the haircut.

The first test of the new political landscape will come on Tuesday. The Public Debt Management Agency (PDMA) announced that the Greek government will proceed to issuing 26-week-bonds to raise 1 billion euros. Their issue will be by auction involving the key negotiators for the securities of the Greek State.