After the ECB, the baton is taken by the rating agencies

With the “ally” of the ECB decision, the Greek bonds continue to “walk” in calm waters a few days before the expiration of the bond.

The positive climate that has been created in the market after the special mention of Greece in the ECB decision for the PEPR pandemic program, is now fed back by the rating agencies. After all, they are left with the final settlement of the issue of Greek bonds by upgrading them to the investment level.

Today, Fitch in a report acknowledges that the latest decision of the ECB supports the sustainability of Greece’s Public Debt. The rating agency claims that the purchases through PEPP contributed to the maintenance of low interest rates on Greek debt, with the 10-year yield falling to about 1.3% from over 2% in May 2020. An additional factor that strengthens Debt sustainability according to Fitch is the so-called “liquidity cushion” held by the Greek State which estimates that it has reached 18% of GDP and which covers the cost of service for the entire 2022.

Finally, the house estimates that growth will reach 8.3% this year with a continuation in 2022 as the resources of the Recovery Fund are expected to accelerate and increase real spending, with growth in 2022 at 4.1% and 3, 6% in 2023, while the public debt ratio will remain higher, slightly lower than 188% in 2023.

In the Electronic Transaction System of the Bank of Greece (HDAT) today transactions of 24 million euros were recorded, of which 6 million euros related to purchase orders. The yield on the 10-year benchmark bond stood at 1.26% against -0.31% of the corresponding German bond, resulting in a margin of 1.57%.

The euro is moving higher in the foreign exchange market today as it traded early in the afternoon at $ 1.1261 from the $ 1.1275 that the market opened.

The indicative price for the euro / dollar exchange rate announced by the European Central Bank was 1.1296 dollars.

Source: AMPE