The Wall Street Journal reports that Greece is planning to issue a long-term bond on Wednesday, which will be the first since the start of the financial crisis and the country’s international bailout.
The paper stated that the Greek government “is likely to sell around 2 billion euros (2.7 billion dollars) in five-year debt,” and that Deutsche Bank AG and J.P. Morgan Chase & Co have undertaken the bond’s issuance. The article also referred to Tuesday’s scheduled auction of short-term debt by the Greek Public Debt Management Agency, where the government raised 1.3 billion euros.
As reported, the yield of the ten-year Greek bonds is beginning to stabilize at 6.1%, which is the lowest level since 2010. “Greek government bondholders suffered a principal loss of roughly 69% over the last two years. But now it’s time to move forward, and the market is positive again on Greek government bonds,” said Alessandro Giansanti, senior rates strategist at ING Bank.
The return of the country to international market will send a message to foreign investors that Greece is again a reliable country that can borrow from large financial systems.
Although Greece’s Finance Minister Yannis Stournaras stated on Monday that the country isn’t rushing to return to markets, many believe that the government might speed up the process before Angela Merkel’s visit to Athens, on Friday.
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