Athens has outlined plans to return to the financial markets for the first time since 2014, with a plan to sell new five-year bonds to investors.
Existing Greek five-year bonds were trading at 3.6% on Monday morning compared with 63% at the height of the Greek financial crisis in 2012 when the finance ministry was unable to pay public sector wages and there were riots in the streets. Following the announcement that Athens would be returning to the market, the yield fell to 3.4%.
The Greek finance ministry has set a goal of a 4.2% interest rate on the new bond. But banking sources believe that level will be hard to achieve and say an interest rate of between 4.3% to 4.5% is much more likely.
Government sources say valuation will take…
Read the full article at: https://www.theguardian.com/business/2017/jul/24/greece-return-bond-market-austerity-eurozone