Encouraged by a Rating upgrade and the lowest interest rates for twelve years, Greece wants to give for the first time out since around a decade, a ten-year government bond. The papers should be in this week to investors and to the Treasury of around two billion euros as the debt management competent financial Agency announced. The time is propitious: The US-credit rating Agency Moody’s has raised the credit rating of Greece just two notches to B1. Reason the light looks on the labour market, the economic upturn and the positive development in the debt.
The interest rate for the ten-year government bond fell, therefore, to the start of the week to 3,622 percent, the lowest level since January 2006. The government in Athens wants to borrow again in the future, regular money of investors, after the country was virtually dependent for ten years on international donors. The state has amassed a Reserve of 27 billion euros. This is more than sufficient to operate the this year with the forthcoming maturities of twelve billion euros, and to stay until 2021 liquid.
in January, the government had borrowed by means of a five-year bond of around € 2.5 billion. The issue was oversubscribed more than four times. “Judging by the experiences with these papers, it should run this time,” said a senior Banker who works for one of the most important traders in Greece. Is accompanied by the Emission of six banks – BNP Paribas, Citi, Credit Suisse, Goldman Sachs, HSBC and JPMorgan.
long-Term government bonds, as well as your returns are considered as benchmark for the credit rating of a country. For comparison: Germany enjoys in the financial markets a lot more trust – the Federal government can get for well under a percent of money.