Athens wants to return to the financial markets

Athens wants to return to the financial markets


The tug-of-war around Greece’s finances continues. The next act: Athens plans – initially for the first time – to go back to the markets. The mood among those responsible seems to be positive.

According to the media and experts, the better rating of the rating agency S & P for the prospects of Greece’s financial situation could pave the way for a return to the financial markets. In Athens several newspapers on Saturday assumed that the Ministry of Finance in the coming days should start a test run for the issue of new government bonds. A diplomat expressed himself similarly. But the project is not easy.

The “company market” – as some experts call it in Athens – is not an easy thing. He is dealing with a test. The hour of truth will not hit until August 2018, according to the financial circles in Athens. Then the current help program ends.

First, a five-year bond with a total value of two billion euros is now expected. The government would be satisfied if an interest rate of between 4.2 and 4.5 percent could be achieved. This would be much better than the interest rate that the Conservative Cabinet had received in the last issue of 4.95 percent in 2014.

When the order book is to be opened, however, is still unclear. “We will not accept loans as a self-purpose”, a high government representative said on Friday of the German press agency.

According to a diplomat, the target of Athens is to create a kind of “cash cushion” of around ten billion euros in the summer of 2018 with several smaller markets. “If you have a stock market with ten billion euros, you can borrow money more easily and at better interest rates,” he said on Saturday the dpa. “The next week will be exciting for the Greek finances.”

The rating agency Standard & Poor’s (S & P) stated on Friday evening that Greece would be given a better rating for creditworthiness: the outlook for the rating was raised from “stable” to “positive”. However, the current credit rating remained at “B-” – it is therefore still low in the so-called junk range for risky assets.

Already on Thursday, the International Monetary Fund (IMF) had announced its participation in another aid program for Greece. The IMF, however, attached to the demand that the Greek debt mountain – at present a good 176 per cent of the economic output – should be reduced.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.