16:51 GMT17 January 2021
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    The bond is yen-denominated but is issued in Japan by non-Japanese companies. Greece sold samurai bonds to investors in 1995 worth 20 billion yens ($162 million or €145.6 million at the current exchange rate).

    Greece made a $94.8 million repayment on a so-called "samurai" bond due on Tuesday, averting a default on government debt to private investors.

    The bond is yen-denominated but is issued in Japan by non-Japanese companies to give borrowers access to Japanese capital.

    The payment was made Tuesday to an account in Mizuho bank which operated the instrument.

    Greece sold samurai bonds to investors in 1995 worth 20 billion yens ($162 million or €145.6 million at the current exchange rate).

    The samurai bond is a market debt instrument. Despite the small debt sum, rating agencies can declare a default when repayment to private-sector investors is delayed. A default on the Japanese debt would signal to other players the beginning of Greece’s default on all its foreign debts.

    Earlier, Athens missed a €450 million repayment to the International Monetary Fund. There was concern the indebted country could also miss payment on the bonds.

    On Monday, eurozone leaders managed to reach an agreement on a new bailout package for Greece, with $95 billion to be given to the country over three years in exchange for economic reforms.

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    Tags:
    bonds, debt, economy, Japan, Greece
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