x

Economy

Greece Launches Benchmark 10-Year Bond Issue

ATHENS — Greece launched its third bond issue of the year on Tuesday, seeking to wrap up most of its annual borrowing needs by the end of the first half.

The benchmark 10-year issue seeks to raise about 2.5 billion euros ($2.8 billion) according to state ERT TV, and by late afternoon Tuesday offers of about 17 billion euros had come in. The yield was expected to be around 1.5%.

Greece exited its eight-year international bailouts nearly two years ago. It had to resort to rescue loans — issued on condition of painful spending cuts, tax hikes and income reductions — in May 2010 after losing access to international bond markets.

With its finances righted and balanced budgets, the country is now in a position to borrow from financial markets, partly because investors are attracted to its issues that offer relatively good returns at a time of low global interest rates. Investors are also encouraged by massive European stimulus packages that seek to address the impact of the global coronavirus crisis.

The government plans to raise about 8 billion euros in total from bond issues this year, and already has collected 4.5 billion.

Nevertheless, Greece's credit rating remains several notches below investment grade.

The country is forecast to see a deep recession this year due to the pandemic, which is expected to bite deep into key tourism revenues. The central bank says it expects the economy to shrink about 6% in 2020 before rebounding about 5.5% in 2021.

Greece raised 2.5 billion euros in a 15-year bond issue in January, and another 2 billion from a 7-year bond in May.

RELATED

ATHENS - An Ecofin decision to incorporate the REPowerEU programme in an update of national Recovery and Resilience plans will allow the strengthening of strategic energy infrastructure which further enhances the national advantage of diversifying energy sources and routes, along with cross-border connections, boosting energy economy, environmental footprint and the country's regional role in the energy map, Greek Finance Minister Christos Staikouras said.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Crowds Flock to Funeral of Alison Russo-Elling, Victim of Greek-American Assailant

BROOKVILLE – With honors befitting an FDNY EMS lieutenant who fell in the line of duty, Alison Russo-Elling was buried today.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.