Greece has successfully attempted to return to international markets after its three- year exile. The €3 billion sale of five-year government bonds with an annual yield of 4.625 percent has increased hopes that the country can stand on its feet after the end of its current bailout program in August 2018. The borrowing cost for the bonds has been lower than those previously issued in 2014 when the total offer stood at €6.5 billion from 200 investors.
Economists highlight that after three turbulent years, Greece is now back in a situation where it was three years ago. However, the prominent bureaucrats of the economic leadership underline that there is still a long and painful road ahead with the implementation of agreed reforms and austerity measures.
Greek government officials stated that they are content with the results - a clear sign of confidence in Greece’s crisis-hit economy. Prime Minister Alexis Tsipras said it was a significant step towards a steady return to capital markets. But Economy Minister Dimitris Papadimitriou warned over unnecessary euphoria and urged for cautious optimism. The government’s chief negotiator with creditors, Finance Minister Euclid Tsakalotos told of a possibility of two more bond issuances before Greece’s bailout program ends.
On the other hand, International Monetary Fund (IMF’s) Mission Chief in Greece Delia Velculescu said the country has a “full agenda” of reforms. Velculescu underlined once again that the monumental public debts of €310 billion should be eased for sustainability. IMF had last week conditionally agreed to join the last bailout program under certain conditions for debt relief from Greece’s European creditors.
The EU’s Commissioner for Economic and Financial Affairs Pierre Moscovici was upbeat during his visit to Athens on July 25. He said Greece was turning a new page with important developments following the return to markets. However, he also urged creditors to keep their promise on debt relief even before August 2018.