Sovereign ABS: Greece puts together tax deal

George Alogoskoufis: securitizing taxes

Greece is planning to securitize delinquent tax receivables this year and next as it seeks to reduce its budget deficit below the 3% threshold specified in the Stability and Growth Pact in 2006. A source close to the deal says that a €11 billion pool of delinquent taxes could back the transaction.

Greek finance minister George Alogoskoufis has confirmed that the government intends to raise some €3 billion to €3.5 billion in two tranches, one this year and another in 2006, by securitizing past delinquent taxes.