PIMCO Says No Greek Market Return



PIMCO's Myles Bradshaw says Greece won't be able to borrow from the markets this year
PIMCO’s Myles Bradshaw says Greece won’t be able to borrow from the markets this year

Even as Greece’s government proclaims an economic recovery will begin this year, the world’s biggest bond fund manager PIMCO said it doesn’t see any chance the country will be able to return to the markets this year, dashing some hopes that Prime Minister Antonis Samaras’ positive spin might kick start a comeback.

In an interview published on Jan. 3 in Germany’s Sueddeutsche Zeitung, a spokesman for PIMCO contradicted assertions by Samaras and Finance Minister Yannis Stournaras that once the last of two international bailouts of $325 billion run out that Greece can borrow again from the markets.

The country has been locked out since appealing to the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) for a rescue in 2010 that came with harsh austerity measures that have worsened a deep recession, now entering its seventh year, and creating record unemployment and deep poverty.

Greece is still also locked in stalled negotiations with the Troika over unresolved reforms and a hole in the 2014 budget and with revenues off expectations – despite what looks like a coming primary surplus – the bond managers aren’t convinced Greece is on the road back just yet.

PIMCO’s money manager Myles Bradshaw told the German newspaper that the investment firm did not believe Greece would be in a position this year to raise money on the international markets. A previous PASOK Socialist government also lost credibility in 2011 when then finance chief Evangelos Venizelos – now serving in the coalition led by Samaras’ New Democracy Conservatives as his Deputy Prime Minister/Foreign Minister – stiffed investors with 74 percent losses in a desperate bid to write down its debt.

Bradshaw’s comments came just a few days after Samaras declared, in a televised New Year’s message, that Greece “Will return to the markets and start to become a normal country again.”

He also claimed that the “worst is over” but PIMCO, along with a raft of other analysts, isn’t buying it. Bradshaw said under the present conditions that a nine-year Greek bond would have an 8% interest rate, far higher than Greece would pay if it just took out another loan.

The German newspaper also cited the President of the German Institute for Economic Research (DIW) Marcel Fratzscher, who said he’s convinced that Greece will require a new rescue package from the Eurozone despite Samaras’ insistence there will not be a third bailout Fratzscher said Samaras’ comments were “politically motivated”.


16 COMMENTS

  1. The truth may be hard to digest in the realm of politics but it is, what it is. PIMCO saw through Samaras-Stournaras’ hyperbole as would any reasonable businessman. The problem here is the media does not challenge them and Euro-crats when they release glowing statements of recovery and turning the corner nonsense.

  2. Greece won’t be returning to the bond markets in the next 10 years or so,and everyone knows it,including the Greek politicos.They tell their electorate otherwise to calm them down amid worries about third bailout program with conditions attached that will see the Greek incomes slashed even further.

  3. PIMCO saw right thru Samaras lies and false promises. I’m bewildered how a PM of a country like Samaras would go on National Television and absolutely lie thru his teeth about Greece returning” back to normal” and “being able to return to the markets” this year is absolutely staggering. Loses his credibility as a leader of a devastated country, but then again; we are talking about Greek politicians who absolutely have no credibility in the world.
    Bradshaw called it as he saw it. 100% accurate. You don’t have to be a genius in political Economics to see the lies out of Samaras mouth.
    It boils down to one thing: Keep milking the EU for every last euro they can STEAL and their 300 useless members in Parliament continue to get their exuberant salaries.

  4. The Greek PM promises have political motives, or he is employing tactical moves to increase the pressure on the Greek official creditors to agree to second debt restructuring.Not happening,of course -I think Athens have been told multiple times that there won’t be second debt write off.

  5. I’m not a Tsipras fan but would love to see him win it if it comes down to it. Greece exit in 2014 (highly unlikely) but if it were to happen, then you’ll see 300 RATS running for the exit when the well dries up my friend.
    God Bless G.Papadopoulos- military dictatorship 67-74 and S.Pattakos whose 101 years old to this day. God Bless these men for bringng glory and honor to Greece at a desperate moment in history.
    These were REAL MEN who cared about their country and their citizens above all else. NOT PASOK or ND that destroyed Greece!
    I hope they get G.Papandreou and all the other CROOKS and HANG THEM!

  6. So aside from arguing for violence you want a communist to win? I would say it is parasites like you that destroyed Greece.

  7. Greece won’t exit the euro,the fanatical EUSSR terrorists won’t allow the their precious euro project to be jeopardized and the Greek political class know that .So Greece WILL be continuously propped up for the sake of the Euro Utopia.But Greece won’t have its EU held debt written down or significant money flows granted by the EU and any new loans no doubt will come with strict conditions for further salaries/pension cuts/ reforms. Greece will be kept afloat on a minimum money drip for many years to come,and it will see deepening recession, higher taxes and further drop in living standards for sure.

  8. I beg to differ. It is parasites like you who supported and love the LAMOGIA- PASOK that destroyed Greece.

  9. Just a point of clarification. KKE is the communist party of Greece. They have about as much of a chance as the Monarchy to rule Greece. The record indicates that to date theft has come by the hands of the two parties currently ruling Greece, ND and PASOK. They have been proven to be thieves while the others have yet to receive that ignoble recognition.

  10. Good Points. Brussels will continue to supplement Greece until there is a crisis in the financial markets. That possibility increases every month as the backing behind the Euro and Dollar has been undermined by government borrowing and spending addiction. We cannot be sure when it will happen, but all signs indicate that it will and swiftly. At that junction Greece will be cast off on it’s own free from the encumbrances of the EZ/EU to fend for itself as best as it can with the tools and skills it has at it’s disposal. A scenario like the French Revolution is not entirely out of the realm of possibilities as there are many old scores that will be settled between the people and “their” government.

  11. First of all they need to hang the traitor Papandreou and its PASOK members for agreeing on this ridiculous bailout, Greece should have told Troika to f#ck off from the beginning.

  12. They might try to return,but they won’t be able to take loans from the markets for less than 8% interest ,so why go this route,when the ESM loans them money at 2%?

  13. Painting a positive picture of the economy of a leader’s nation is standard practice in politics as optimism aids a recovery. If he did the opposite it would really hurt. But, I agree. If he actually believes Greece’s future is looking brighter he is on LSD. Greece never was competitive comparative with the rest of Europe and is not structured to be so. B

  14. “Politically motivated,” indeed. These guys at the helm have a lot to loose if they become any less significant and fall completely from the next or a snap election. Having their seats usurped in the halls of power does not only mean a humiliating defeat for the green and the blue, but an end to keeping their front feet in the feeding trough. But most significantly, It will come with much anticipated legal prosecution in the absence of any remaining historical protection.

    There will be a host of indictments and investigations leveled at the leaders of the blue and green parties (Fatso and Sammy)–and their very the very mafias that bilked the Greek state for so many years. Skeletons in the closets of many PMs and ministers will be flying out the Greek Parliament building like Ghost Busters when the flood gate of legal inquires is finally opened.

    Stay tuned. The antics Mr. Liapis will look like the works of an errant Boy Scout compared to the misdeeds and larcenous tricks these guys and their buddies have pulled over the years–all of which the Greek public will finally have the legal and moral right to investigate through unsympathetic parties.

    Trust me. Just as soon as they are removed, its . . . ALL ABOARD FOR THE SCANDAL TRAIN!

    There will be a ‘helicopter waiting on the roof’ scenario as these guys and their cronies seek higher ground most likely outside the country to avoid the impending day of judgement.

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