SEV calls for an immediate market foray
The Hellenic Federation of Enterprises (SEV) estimates the burden on the state budget from the shuttering of enterprises at about 6 billion euros per month, and recommends an immediate market foray while the timing remains favorable, given the low yields, as most states will also try to tap the markets soon.
In its weekly economic bulletin, SEV calculates that the government measures are setting the budget back by about 3.5 billion euros a month, while the revenues lost will come to 2.5 billion euros per month. SEV analysts claim this can be covered for only three months from the cash buffer, as out of its 37 billion euros 16 billion is in the form of the stock of the European Stability Mechanism (ESM), which must give its consent before that cash is spent.
The solution of a Eurobond, or “corona bond,” would be cheaper than state borrowing, the bulletin notes, but, since eurozone states have yet to reach any agreement on that yet, it adds that if the government is considering a market foray it had better do so now.
