Investors at last week’s Greek bourse roadshow in London said they wouldn’t invest in Greece until the country returns to growth, the bailout agreement is implemented in full and Greece is included in the European Central Bank’s quantitative easing program, according to sources.
Speaking to Bloomberg, fund manager Michel Danechi of Duet Asset Management, which handles assets of $1.5 billion in emerging markets, said, “If Greece goes into the QE program then the mood would turn automatically.” He went on to admit that, at the moment, “the valuation is there,” adding, “Few believe that this government can deliver.”
People familiar with talks in London told Kathimerini that investor interest in the Greek bond market is currently low and in order for it grow again there are three wishes they want satisfied.
The first is for the recession to end and the economy to start expanding. Deputy Economy Minister Alexis Haritsis tried to appease investors, saying there will be a significant rebound in 2017, but it appears they would rather wait for the forecasts to prove true first.
The second concerns the implementation of all measures the government agreed to with the country’s creditors as part of the third bailout agreement. Thanasis Drogossis, head of equities at stock brokers Pantelakis Securities, who took part in the London event, told Bloomberg the Greek message was “Invest in Greece,” to which the response was, “If you do what’s necessary, we will.”
The most crucial condition is for Greece to enter the QE project, as this will signify that the creditors consider Greece creditworthy, leading investors to buy Greek bonds.