Thursday October 23, 2014 Search
Weather | Athens
24o C
14o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bond issue possible in April

 Gov't confident enough to return to money markets, where interest is strong
Piraeus Bank saw its bonds of 500 million euros snapped up, with the issue oversubscribed six times and the interest at just over 5 percent.

By Sotiris Nikas & Yiannis Papadoyiannis

The country’s return to the international money markets with a new bond issue is the next big challenge for the government after its agreement with its creditors on Tuesday.

Prime Minister Antonis Samaras wants the new bond to be issued “as soon as possible,” according to officials familiar with the matter, and this could take place at the end of April.

The optimism for a rapid return to the markets has three key sources: The main obstacle of the inconclusive talks with the creditors has been removed, the financing gap for the Greek program has been covered for the next 12 months (otherwise the International Monetary Fund would not have given its consent for the monitoring to be concluded), and investors are showing strong interest.

Yields on the benchmark 10-year bond dropped to 6.8 percent on Tuesday from 7.2 percent last Friday, while the three-month treasury bills auctioned saw their interest rate fall to 3.10 percent, from 3.60 percent last month.

A top Finance Ministry official however made it clear the bond issue will be a test, and is not intended to cover Greek funding needs. It will aim at forming a better climate for Greek bonds concerning their negotiation in the secondary market.

Meanwhile, Piraeus Bank had a very successful bond issue on Tuesday that was six times oversubscribed. The interest rate came to just over 5 percent, which was much lower than the market had expected. For an issue of 500 million euros there were offers adding up to 3 billion euros, meaning that the process proved particularly short. It involved no fewer than 240 institutional investors from 25 countries.

Senior Piraeus officials told Kathimerini that this successful return to the money markets served as a strong vote of confidence not only for the group and the local credit system but also the economy and the country’s prospects.

Sources say that National Bank will soon go ahead with a bond issue of its own, making the most of the favorable climate.

ekathimerini.com , Tuesday March 18, 2014 (22:19)  
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Global oil price drop sends local fuel prices back to 2010 levels
Buy big house, become a citizen
Cyprus seeks EU response over Turkey´s EEZ violation
Cyprus is to raise the issue of Turkey’s violation of its exclusive economic zone (EEZ) at Thursday’s European Council meeting after Turkish Prime Minister Ahmet Davutoglu raised the specter...
Thirteen indicted for inmate torture
Thirteen correctional officers and their former warden will stand trial in Serres, northern Greece, over the death of Albanian inmate Ilie Kareli on March 27 at Nigrita Prison. Kareli was tr...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOK’s George Papandreou ma...
EDITORIAL
Taking care of our key industry
It’s time to face facts: Tourism is the country’s heavy industry. The sector’s considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Roberto´s heroics make Kasami´s goal count
2. Athens weighs its LNG and CNG options
3. Greece ranks among global leaders in tourism growth
4. Global oil price drop sends local fuel prices back to 2010 levels
5. Buy big house, become a citizen
6. Cyprus seeks EU response over Turkey´s EEZ violation
more news
Today
This Week
1. At least 11 banks to fail European stress tests, three in Greece, report says
2. Cyprus to block Turkey's EU talks after EEZ violation
3. EU’s Juncker wins Commission-team approval with investment vow
4. Juncker’s EU commission team set for parliamentary green light
5. Taprantzis resigns from privatization agency TAIPED
6. Fallen tree, smashup cause traffic jams in Athens
Today
This Week
1. Istanbul skyscraper casts shadow over Greece's banking ambitions
2. Coalition shooting itself in the foot
3. Greece’s closed society is central to its current malaise
4. Greece must stick to reforms, says Schaeuble
5. The past, present and future of the Greek debt crisis
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.