Banks discern many benefits in Greece’s new bond issue

Banks discern many benefits in Greece’s new bond issue

Greece’s return to the bond markets on Tuesday will have a particularly positive impact on the economy and the local credit system, according to senior bank officials.

Domestic lenders expect to absorb some 1 billion euros from Greece’s first bond issue since 2014. The banks will swap paper maturing in 2019 for the new issue, a move set to fetch certain capital gains given the difference in interest rates and the maturity period. Besides the swap, local banks also intend to proceed with a slight increase in their Greek bond holdings.

Bank officials told Kathimerini that the country’s return to the markets constitutes a major step toward restoring normalcy.

If the issue proves successful it will give the economy a decisive boost in terms of confidence, triggering a series of positive developments, from the gradual return of bank deposits and strengthening interbank transactions, to a general improvement in the country’s economic and investment climate.

Success, they stress, will depend on the participation of foreign investors.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.