While the Prime Minister Antonis Samaras has claimed that the “worst is over” and that Greece will return to the international markets in 2014, executives of American investment firm Pimco gave an interview to the Süddeutsche Zeitung newspaper, expressing their skepticism over the validity of such claims.
Specifically, Pimco’s executive vice president and portfolio manager in London Myles Bradshaw confessed that he does not believe that Greece will be able to draw any funds from the international markets. Under the present financial conditions, a 9-year Greek bond would have an 8% interest rate, with Mr. Bradshaw estimating that borrowing with these rates would be more expensive than taking out a loan from the ESM.
The German newspaper also cites the President of the German Institute for Economic Research (DIW) Marcel Fratzscher, who is convinced that Greece will require a new rescue package from the Eurozone. Mr. Fratzscher explained that Mr. Samaras’ comments on the financial progress were “politically motivated”.
