After four years of exclusion from the credit markets, Greece is triumphantly marking its return with a 5-year bond. Spirits are high at the Ministry of Finances, which is optimistic that the bonds will pave the way for further growth in the economy and an improvement of the everyday life.
So far the signs have been positive, with offers for the bonds exceeding 16 billion euros, when Greece was searching for 2.5 billion euros. According to some analysts, this means that the interest rate could also be less than 5%.
An officer from the Finance Minister reminded that Greece’s last foray into the markets, in April 2010, was a disaster, as it only managed to collect 390 million euros for a 1-billion-euro 20-year bond.
While Greece was planning on drawing 2.5 billion euros from the bonds, the interest means that this could increase to 3 billion euros, while the bond’s maturity itself is still undetermined.
