Opportunity opens for new Greek government bond issues

Subject

Greek debt’s improving attractiveness.

Significance

Although declining government bond yields reflect a gradual reduction in Greek credit risk, the pace of reduction seems to be driven more by recent developments in global capital markets and higher investor risk appetite, than any significant improvement in economic fundamentals.

Impacts

• Lower yields on government debt will pave the way for a surge in corporate issues to lock in lower interest rates and extend debt maturity.
• Improved foreign and domestic investor sentiment is leading to a rise in the Athens Stock Exchange general index.
• Regular GGB issuances will support liquidity in the secondary market.