MARKETS

PDMA eyes more bond issues in 2022

pdma-eyes-more-bond-issues-in-2022

The 2022 strategy of the Public Debt Management Agency (PDMA) intends to make the right moves that will persuade the rating agencies to upgrade Greece. Its objective is to tap the bond markets for 10 billion euros, as well as take steps to further improve the sustainability of the national debt, for example through early repayments.

According to the government estimates included in the first draft budget, the debt-to-GDP ratio will be reduced by 15.2 percentage points next year compared to 2020 – i.e. from 205.6% to 190.4%.

Securing a constant presence in the bond market as an issuer, combined with the utilization of opportunities stemming from Greece’s participation in the European Central Bank’s pandemic emergency purchase program (PEPP), the further supply of liquidity and the reduction of the spreads are the key goals the PDMA has set for 2022, just like in 2021. It has also become known Greece will attempt the issue of its first “green” bond.

Another important objective is the early repayment of some of the loans Greece has taken out, thereby further reducing the risk of refinancing.