Greece’s return to global bond market a success
Print Edition
BUOYANT Greek officials hailed the country’s return to the international debt market after four years as an overwhelming success yesterday, with investors snapping up the five-year bond in a sale that was eight times oversubscribed.
The finance ministry said it had raised 3 billion euros (US$4.14 billion) with a 4.75 percent coupon — a lower borrowing rate than the 5 percent initially hoped for.
The sale is a milestone for Greece. It has been locked out of the markets since it nearly went bankrupt in 2010, when its borrowing rates spiked upon the revelation that its public debt was much larger than previously estimated.
“It seems that the world community now trusts Greece once more,” Finance Minister Yannis Stournaras said. “We had a very big success today.”
Greece has been relying on funds from international bailouts since May 2010 — in return for which it has imposed a series of deeply unpopular spending cuts and tax hikes.
The dissatisfaction has led to frequent strikes and often violent demonstrations.
Hours before the bond issue, a car bomb exploded in central Athens before dawn outside a Bank of Greece building, causing damage but no injuries. Anti-terrorist police were investigating the attack, for which there was no immediate claim of responsibility.
The bombing — and the bond issue — came the day before German Chancellor Angela Merkel was expected in Athens on a brief visit to meet with Prime Minister Antonis Samaras.
Government spokesman Simos Kedikoglou accused the bombers of trying to detract from Greece’s success.
“The evident target of the attackers is to change this image, and change the agenda,” he said. “We will not allow the attackers to achieve their aim.”
The European Commission, the European Union’s executive arm, hailed the country’s return to the bond market, but cautioned against complacency.
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