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Greece Back on World Markets at 4.65% Interest

13 July 2010 / 14:07:54  GRReporter
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Treasury bills worth € 1.25 billion tender launched the Greek Government on July 13, and the interest rate on them is 4.65%. The limitation period is 26 weeks. This is the first attempt of Greece to return to international markets since the implementation of the rescue plan for financial aid. The first crash test of free credit of the country is assessed as successful after the government collected about € 1.6 billion from the sale of securities. Economic analysts at the  Naftoemboriki and Katemerini newspapers estimated that the interest on government securities would reach levels of around 5%, but this did not happen. The interest rate has not significantly exceeded the index of the previous government securities tender on 13 April this year, when its value was 4.55%.

The Ministry of Finance announced that individuals are invited to participate in the tender by registering in any Greek bank or brokerage house. The highest nominal value for an individual will reach € 15,000 and all who wish to participate should apply not later than Wednesday, July 14, this year.

Currently, Brussels is satisfied with the implementation of the socio-economic reforms in Greece. Eurogroup’s Chairman Jean-Claude Juncker and European Commissioner for Economic Affairs to the European Union announced that data from the first half of 2010 show a good degree of stability and this pace should remain constant. Greece should strictly adhere to the agreed points in the Memorandum for financial aid from the European Union, the European Central Bank and the International Monetary Fund (the holy Triple) to reduce its public deficit below 3% of GDP by the end of 2013.

At the same time, the President of the European Council Herman Van Rompuy warned that Europe and the countries that face serious financial difficulties should take it easy. “Storm’s not over yet,” he says and explains: “Trust of international markets can be restored only on condition that the Member States of the EU change their economic policy and do their utmost to improve their competitiveness.” Rompuy recommended new penalties for countries that do not follow the strict economic discipline of the Union and have increased external debt and public deficit. The penalties are not specified yet, but economic analysts argue that they would include suspension of EU subsidies, penalty fees and others.

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