The Strategist

Greece gets more than €11 bln for its first in nine years 10-year bond

03/06/2019 - 07:25

On Tuesday, the Ministry of Finance of Greece issued 10-year bonds, which happened for the first time in the last 9 years.

According to the Athens Stock Exchange, the demand for bonds exceeded 11.3 billion euros, although it was expected to receive at least 2 billion euros.

At the end of last month, Greece entered the market with 5-year bonds.

For several years, the country hasn’t had any opportunity to borrow in international financial markets due to the deep economic crisis.

In August 2018, Greece withdrew from the program of financial assistance, which since 2010 had been provided by a special association of international lenders (the European Commission, the European Central Bank and the International Monetary Fund) for 8 years. Funds were allocated at low interest in exchange for tough reforms and austerity policies.

Recently, the international rating agency Moodyʼs immediately raised the rating of Greece in local and foreign currencies by two steps from “B3” to “B1”. The rating outlook is revised from “positive” to “stable”.

The agency stressed that "the ongoing reform efforts are gradually beginning to bear fruit in the economy."

Greece's economy of 2018 added 2.2% yoy in the third quarter, after rising 1.7% in April-June last year. Moreover, the estimate of GDP growth in the second quarter was revised downwards from 1.8%. In comparison with the previous three months, the country's economy increased in the specified period by 1% after 0.4% in the second quarter (according to a revised estimate from plus 0.2%).