Greece returns to debt market with seven-year bond

Greece returns to debt market with seven-year bond

ATHENS-Agence France-Presse
Greece returns to debt market with seven-year bond

Greece on Feb. 8 made another tentative return to markets with a seven-year bond, its first sale of the sort since the start of the economic crisis, officials said.

A finance ministry source confirmed the issue, while another source with knowledge of the sale said Greece seeks to raise around 3.0 billion euros ($3.7 billion).

The last seven-year bond, sold at an interest rate of six percent, was issued in April 2010 -- days before the country publicly requested the first of its three EU-IMF bailouts.

Greece currently has no real need to draw money from the bond markets as it is still receiving financial support at lower rates under its international bailout that ends in August.

However it is a psychological milestone, demonstrating that Greece is back on the road to weaning itself off bailout aid, as well as building a precautionary cash cushion.

In July, Greece made its first return to debt markets after a three-year hiatus, selling three billion euros’ worth of five-year bonds at 4.625 percent, lower than its previous outing in 2014.
Athens had geared the sale for Feb. 6 but it was postponed amid global stock market turmoil earlier this week.

Greece, bonds, IMF, bailout