Greece successfully raises 2 billion euros from 7-year state bond

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Greece raised 2 billion euros ($3.5 billion) on Wednesday with a 7-year bond auction, a result the government hailed as confirmation of market confidence during difficult times created by the coronavirus pandemic.

Greek Finance Minister, Christos Staikouras, said the issue carried a 2 percent yield and described the outcome as satisfying given that a similar issue in July 2019, “in a much better economic environment,” carried the same yield.

“Greece has accessed the markets today, through adverse social and economic conditions created globally by the pandemic, and succeeded,” the Finance Minister said.

“The confidence markets have in the government’s policy is confirmed. Greece has proven that it can be successful even in adversity.”

Greek Finance Minister, Christos Staikouras, said the decision to access the markets was ‘successful.’ Source: AFP.

Greece decided to tap into markets to take advantage of improved borrowing rates driven by massive European stimulus packages to address the impact of the coronavirus.

The government said the bond issue, Greece’s second of the year, was also aimed at continuing to normalise the country’s access to bond markets following eight years of international bailouts that ended in 2018.

The country issued a 15-year bond in late January. The yield on Greece’s 10-year benchmark bond dipped to historic lows of below 1 percent in February, but soared to 4 percent weeks later amid global market panic surrounding the pandemic.

Staikouras has previously said he expects the economy to contract by 5-10 percent this year due to the effects of the pandemic, before rebounding in 2021.

READ MORE: Greek Finance Minister: Expect a recession of up to 10 percent due to tourism losses.

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