YESTERDAY'S 750m eurobond issue was a decisive step towards a "systematic" return to international markets after a three-year exclusion, finance minister
"This issue means that we will be able to refinance a significant part of the present domestic debt and achieving a lower debt re-servicing cost," he told reporters.
Confident of the success of the road show arranged by global behemoths
When the book opened yesterday it received 1.5bn in interest and rose to 2.0bn, according to Reuters and other market analysts.
The interest rate was expected to be around 5.00-5.25%. Reuters said it opened with an official guidance of 4.90%, which is tighter than initial price thoughts released on Tuesday and having dropped to 4.85% eventually settled at 4.75%.
"Through a concerted effort,
"Just a few hours ago, the issue of the 5-year euro bonds was concluded with great success. The total bids reached 2bn, which is a significant oversubscription and a strong vote of confidence in the prospects of the
But the president suggested a measure of reservation as the bond issue's success "should not mark a relaxation in our efforts towards reforms and revival of the economy. On the contrary, we are determined to continue with the corrective measures to reinstate our growth prospects."
In his offhand remarks after his speech, Anastasiades said that "the first thing that any prudent homemaker would do would be to restore his household's credibility and what we have achieved today is to restore credibility of the
"Bond yields have been falling, there has been a string of good news on the macroeconomic front and if you have any lingering worries that
"So, as long as the coupon (interest rate) is not too high and it helps to smooth out maturities then it is a sensible move right now," she added.
The issue follows a smaller 100m 6-year bond in April, where the government wanted to test the waters and achieved a steep 6.50% via private placement.
Although it had a high yield, it nonetheless helped rebuild confidence in
"We are satisfied with the very positive outcome and the fact that the rate is clearly below 5% suggests that
"This has fortunately refuted all the worries expressed over the past few days, which fully justifies the choices of the government and specifically the Minister of Finance," he said.
"With the pace of reforms continuing, we have every reason to believe that future reviews (by the Troika of international lenders) will continue to be positive," Prodromou said.
The socialist EDEK party said in a statement that as long as the yield was below 5%, this was a positive development, but said that the funds raised should be used to boost liquidity in the market and should be injected into the real economy.
But the Greens party said that a sense of trust in the markets should not be seen as a recovery of the economy.
"This is all a communications trick and cannot be described as a joyous event and cause for celebration. In reality, this is not counterbalanced with development and growth which will earn real incomes and allow the state to repay its debts."
The yield on
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