Greece To Place Sovereign Bonds Over The Next Three Months
Athens, Greece, July 23, 2014 (Newswire.com) - This was stated by the head of the Greek Finance Minister Yannis Sturnaras gully in a two-day informal meeting of Ministers of Economy and Finance (ECOFIN).
According to Sturnaras, Greece will start with a "small issue of bonds - a three-or five-year - in the first half of 2014", which will help improve the country's financing. Minister did not specify how much will be the issue and when it will be placed.
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Marios, Savvas
However, three Greek officials confirmed, that the government is approaching the end of the implementation of the second credit program of international lenders (the EU, ECB and IMF) plans to return to the public markets for financing by issuing bonds for 2 billion euros. According to one source, "the question of the release of a $ 2 billion has already been solved, but it remains to determine the temporary release to the markets." The official did not rule out the possibility of further sales of government securities in the coming months.
The Wall Street Journal earlier claimed that Greece wants to release a bond issue for 3 years or 5 years old by June and plans to get up to 5 billion euros in the financial markets by the end of the year.
Since the beginning of prolonged financial crisis Greece has been denied access to the open markets because of the exceptionally high interest rates steady at its securities. Last term bond issue took place in April 2010: Seven-time were placed with a yield of 6% per annum. In this case for the acquisition of Greek 10-year bonds, investors demanded 30% per annum. Interest rates on 10-year bonds has since dropped to 6.5% after Athens implemented reforms, seizing the financial condition of the country.
Sturnaras also said that Greece has achieved a primary surplus of the state budget (surpluses without interest payments on public debt) in about 2.5 billion euros in 2013. It is a measure that plays an important role in ensuring debt sustainability and promised steps by the eurozone to further alleviate the Greek debt burden has yet to officially confirm the April European statistical office Eurostat.
Ministers of Economy and Finance of the eurozone countries announced today its decision to unlock the next tranche of 8.3 billion euros, which will be provided to Athens three installments. As the chairman of the Eurogroup Jeroen Deysselblum first mikrotransh 6.3 billion euros will go to Greece in late April as part of the second package of credit support in this country. "This amount will allow Athens to pay the bonds, which mature in May," - said the head of the Eurogroup. Then follow micro transhes 1 billion euros in June and another 1 billion euros in July, but to get them you will need to perform advanced "troika" of creditors claims. In May, as expected, the International Monetary Fund will transfer its 3.2 billion euros.