Foreign investors show their confidence in the Greek economy, and that’s why their positions in Greek bonds reached 4.2 billion euros in the first four months of 2019.
The data of the Bank of Greece shows that portfolio investments recorded a significant increase of EUR 4.2 billion in non-residents of Greece’s placements in bonds and treasury bills of the Greek State.
In April 2019, in the category of direct investments, an increase of EUR 378 million was recorded, with most important transaction the participation of AMC Oak SARL (Luxembourg) in the capital increase of Praxia Bank.
In the portfolio investments of the last quarter, an increase of EUR 1.2 billion in non-residents’ direct investment in Greece has been recorded. In portfolio investments a significant increase of EUR 4.2 billion in non-residents’ placements in bonds and treasury bills of the Greek state has been recorded.
Reuters: Best yield in the Eurozone for the Greek bonds
The Greek bonds have recorded the best yield in the eurozone for this year, enjoying inflows from investors who have been disappointed by the low yields offered by the debt of other countries and are afraid of the increased political risk in Italy.
Nine years after bankrupcy, the painful reforms are beginning to bear fruit, states a report from Reuters.
The agency notes that this month, Greece’s borrowing costs of the last five years fell below that of Italy for the first time since 2008. It is remarkable, Reuters notes, considering that Italy’s credit rating is at the “investment grade” of BBB, well above the “BB-” of Greece.
The yields of the Greek bonds have recorded the biggest fall compared to the debt of any other country in the eurozone this year. The spread between the Greek 10-year yield and the German bund has shrunk by 156 basis points, while Italy’s spread compared to Germany’s has fallen by only 36 basis points.
Surplus in the five-month period
At the same time, the primary surplus amounted to EUR 438 million compared to EUR 737 million in the first five months of 2018, according to the Bank of Greece.
In the period January-May 2019, the cash balance of the central government showed a deficit of EUR 2,069 million against a deficit of EUR 1,645 million in the corresponding period of 2018.
During this period, the revenues of the regular budget amounted to EUR 17,749 million, from EUR 17,707 million last year. Regarding the regular budget expenditures, they amounted to EUR 21,457 million, from EUR 19,515 million in the period January-May 2018./ibna