Careful steps for return to the markets

The Finance Ministry will be treading carefully as Greece prepares its return to the international money markets for borrowing that will cover part of the country’s funding gap and signal the gradual recovery of Greece’s economic independence.

A senior ministry official has informed Kathimerini that Greece’s first effort to tap the markets after four years will not have the character of a massive and disorganized market entry, but, as is usually the case in such instances, the government will try to have the bulk of the bond issue covered by private placements.

The same official explained that the government’s aim remains the issue of bonds, most likely in the second half of the year, for an amount that will not exceed 3 billion euros, and the maturity period of the new issue will be between five and seven years.

Last week Finance Minister Yannis Stournaras said there will be a five-year-bond issue for about 1.5 to 2 billion euros. However, the details of the project have not been finalized and the government has yet to overcome the resistance of Germany and the International Monetary Fund, although the signals from investors have been very positive.

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