After six years of recession, and only two years after defaulting on its debts, the government in Athens believes it can return to the international bond market this month, upon some signs that economic conditions in Greece are improving.
The Greek government aims to raise 2 billion euros in a sale of five-year bonds, according to banking sources quoted in the financial press. Moreover, 51% state-owned Public Power Corporation (DEI) reportedly aims to sell at least 300 million euros of debt in April,the first public-sector company enterprise to issue bonds since the financial crisis began,
Greek Prime Minister Antonis Samaras stated on Wednesday that “Greece is back” while foreign investors have also warmly welcomed a recent bond issue by Piraeus Bank.
Finance minister Yannis Stournaras told Reuters that Greece’s first attempt to return to debt markets would be on a “trial and error” basis and that the government estimates that it would no longer depend on its lenders by 2016. “The mood has changed dramatically recently. Simply look at what happened at Eurogroup – everybody thinks that Greece now is out of the woods,” said Stournaras concerning the positive attitude of the European finance ministers towards Greece.
The recent Eurogroup conference in Athens after the EU and IMF release a new aid package to Greece, but Stournaras expressed optimism that Greece might not need any additional aid beyond its current bailout for the next year.
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