BUSINESS

Low Greek bond yields ‘are justifiable’

TAGS: Markets

It is justifiable that Greek government bond yields are close to their lowest level in years given the structural reforms and budgetary measures the debt-laden nation has implemented, according to a board member of the eurozone’s bailout fund.

Greek government bonds were one of the eurozone’s best performers in 2017 and have started 2018 on a strong footing on expectations that Greece will exit its bailout this year.

“Greek government bond yield levels at the moment are justifiable,” Kalin Anev Janse, a board member and funding chief at the European Stability Mechanism, the bloc’s bailout fund and one of Greece’s chief creditors, told Reuters and Thomson Reuters’ IFR in an interview this week.

Greece’s 10-year bond yield hit a 12-year low at around 3.68 percent on Wednesday, before being pushed up slightly with other eurozone bond yields.

“They have pushed through unprecedented levels of structural reforms and are one of the few countries in the eurozone to run a fiscal surplus along with Netherlands and Germany,” Janse told Reuters.

[Reuters]

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