11th April 2014

Greece successfully sells state bonds on the market

On 10 April, Greece was able to return to bonds markets for the first time since the 2010 start of its debt crisis. At the auction, the country sold €3 billion worth of 5-year bonds at a yield of 4.75%, which is considerably lower than the expected range of 5-5.5%. Also, the demand outnumbered the supply by a factor of 6, which indicated huge investor confidence. This is good news for Greece which has been under programme since 2010, has received two international bailouts amounting to €240 billion and has accepted tough austerity measures and structural reforms. These measures are extremely unpopular as they drove Greece to a long-term recession and high unemployment. This test emission is a good sign of investor confidence in Greece, but Greece is far from safe. Its public debt still amounts to 176% of its GDP and according to Greece´s creditors, the infamous Troika, Greece is not making progress fast enough. This success could, however, help stabilize the public opinion ahead of the European Parliament elections. Angela Merkel traveled to Athens to show Germany´s support for Greece on its way back to financial markets.

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Members of the American Chamber of Commerce in the Czech Republic