FT: Greece is planning a return to the bond markets

FT: Greece is planning a return to the bond markets

Athens, November 10, 2015/Independent Balkan News Agency

By Spiros Sideris

“Greece is planning a return to the markets”, is the title of an article published in the Financial Times, which says that Greece is preparing to rejoin the bond markets.

The situation, is noted in the article, has improved after the agreement of the government with lenders last July and now Greece is preparing for a return to the markets, which could come in the first half of 2016.

Source cited by the FT states that the return to the markets “depends on a positive chain reaction of events, but there have already been discussions”.

It is noted that the prices of Greek bonds on the secondary market already have “recovered” from April, when they were sold for 60 cents to the euro, while now they are reaching 94 cents to the euro, for those maturing in 2017 and 92.7 cents to the euro for those expiring in 2019.

“If Athens was able to sell bonds on international markets in 2016, this would represent a remarkable turnaround in the country’s prospects”, is stated in the article.

As is mphasized by banking sources in Greece, which invokes the Article, the successful recapitalisation of banks will restore investor confidence, while they are reminding that “we may see a repetition of the election in 2014 – that is the banks issuing bonds first by banks and then follow the State ‘.

Sources BoG invoked by the FT report that the first evaluation must be completed in order to proceeded with the recapitalisation of banks.

After that, the way will be open for the financing of Greek banks by the ECB, with the known exception (waiver), which would allow Greece to issue new bonds. “But we cannot say exactly when right now”, it is written.