Greece is planning to buy back bonds via Dutch auction, say officials on Monday. In its recent statement, Greece has confirmed its plans of buying back the bonds through a Dutch auction in an effort to cut its ballooning debt and further enabling it to carefully assess the level of demand prior setting out any final price for the deal.

As many believe, foreign lenders are putting in their best efforts to put Greece's debt back on sustainable footing and the bond buyback procedure is one of same efforts by its foreign lenders, who believe that the success of the procedure will help pave the best way for the country to get the long-delayed funding, thereby helping it in further avoiding all the bankruptcy related risks.

The plans for the buyback were announced last week and since its announcement, the only concern of the officials is the issue if the procedure will tempt enough bondholders enabling Greek to cut its debt by a net 20 billion Euros or no (it is actually the target figure that has been set by euro zone finance ministers and the International Monetary Fund).

According to the official reports, the procedure of buyback will be carried out through a modified Dutch auction that will also allow an element of competition among investors to get the best price.