The Minister of Finance, Christos Staikouras, spoke about another success regarding the current issue of the 10-year bond, noting that “it gathered high demand and quality of funds”. He also noted in his statement that “Our country raised 3 billion euros, with an interest rate of about 1.8%” and added that “the cost of borrowing is considered very satisfactory, taking into account the current, international situation. Greece borrowed today with a cost less than half compared to the corresponding issue of March 2019, when the interest rate was set at 3.9% “.
The statement of Mr. Staikouras in detail:
“Greece today proceeded with the issuance of a 10-year bond, opening the curtain of the loan program for 2022.
A publication that, once again, was crowned with success, as it gathered high demand and quality of funds.
Our country raised 3 billion euros, with an interest rate of about 1.8%.
Borrowing costs are considered very satisfactory, taking into account the current, international situation.
A situation in which government bond yields are rising internationally due to the high uncertainty caused by the ongoing health crisis, rising inflation and the impending turn of central banks towards a more restrictive monetary policy.
Characteristic of the upward trend in government bond yields is that German bonds are trading, for the first time in three years, with a positive return.
However, despite this difficult situation, Greece borrowed today at a cost of less than half compared to the corresponding issue of March 2019, when the interest rate was set at 3.9%.
While, the interest rate margin, the spread, of the Greek bond against the German one has shrunk significantly, both in relation to the pre-pandemic levels and the levels of the beginning of 2019.
Therefore, our country, continuing the – proven – successful publishing strategy and the effective economic policy of the last 2.5 years, manages, in an international environment of intense liquidity, to move unwaveringly, under any circumstances, to the regularity of a classic publisher- Eurozone country, “locking” the borrowing costs of the decade at low levels.
As a Government, we ensure stability and security.
We keep the cash resources of our homeland at a safe height, despite the unprecedented – all over the world – difficulties and challenges.
Challenges to which we respond immediately, methodically, insightfully and effectively.
That is why the prospects of the Greek economy are very positive, as was confirmed in the last meetings of the European institutions and they recognize – through today’s “vote” of confidence – the international markets.
We continue with responsibility, determination and confidence, the implementation of a prudent fiscal policy, the formulation of a far-sighted publishing strategy and the implementation of reforms, so that our economy continues to strengthen, comprehensively as we have seen today, both with successful market entry and strengthening the deterrent power of the country “.
Source From: Capital