Greek recovery will attract institutional investors

Significance

The new issue’s main purpose was to build up a benchmark yield curve to facilitate the sovereign’s future access to capital markets and, ultimately, pave the way for the broader participation of Greek corporates and financial institutions.

Impacts

• Tightening EU monetary policy and/or adverse developments in EU peripheral economies should push Greek yields and spreads upwards.
• Investor confidence will hinge on the government’s strict adherence to reform and ability to resolve banks’ non-performing loans.
• The upcoming elections in Greece may destabilise the issuance schedule.