Greece’s 10-year bond yield makes record fall below 1%

·

Greece’s 10-year government bond yield fell below 1% Wednesday for the first time, bolstering the country’s effort to ease strict budget conditions set by bailout lenders.

The yield dropped to 0.957% but remains among the highest borrowing rates in the 19-country eurozone and roughly level with Italy — one of Europe’s strongest economies. Germany, France, Belgium, and the Netherlands all currently have negative long-term interest rates.

Prime Minister Kyriakos Mitsotakis tweeted that a “benchmark once thought of as impossible has been reached.”

“Greece is now on a growth trajectory that holds great potential and opportunity for global investors,” he added.

His center-right government is hoping that improved economic growth, a sovereign rating approaching investment grade, and access to lower-interest borrowing from financial markets will help convince creditors that Greece can keep its national debts sustainable with lower budget performance targets.

Finance Minister Christos Staikouras said the constant drop in Greek bond yields is “proof of market confidence in the course and the prospects of the Greek economy, and in the government’s economic policies.”

Greek national debt is still around 180% of gross domestic product after its economy was kept afloat with successive international bailouts between 2010 and 2018 from the International Monetary Fund and a eurozone rescue fund.

In return for the rescue loans, successive Greek governments implemented deeply-resented austerity measures aimed to balance the public finances, slashing spending, cutting incomes and hiking taxes for years.

Staikouras said Wednesday that the government’s aim is to “achieve high and unflagging growth, create many and good jobs and strengthen social cohesion.”

In Athens last week, EU Finance Commissioner Paolo Gentiloni said the European Union Commission was willing to discuss easing strict targets for Greece’s primary surplus — the country’s annual budget balance before debt servicing costs — but that a decision on the request would be made later this year.

Sourced by: Associated Press

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

European Parliament backs resolution to protect Christian minorities in Syria

The European Parliament has adopted a resolution by overwhelming majority calling for the protection of Christian minorities in Syria.

Konstantinos Argiros delivers emotional first-ever performance in Constantinople

One of Greece’s top pop stars, Konstantinos Argiros, performed in Turkey for the first time on July 10, delivering a sold-out concert.

Survivors pulled from Red Sea two days after Houthi strike on Greek cargo vessel

Four more survivors from the Greek-operated cargo ship Eternity C have been rescued from the Red Sea nearly 48 hours after the vessel sunk.

Migration Minister defends asylum suspension as necessary to protect Greece’s borders

Greece has defended an amendment which would temporarily suspend asylum for individuals arriving illegally by sea from North Africa.

Meet the Greek Australian doctor fighting to save Indigenous children’s lives

Professor John Carapetis, renowned paediatrician and infectious disease expert, hopes to close the health gap for Indigenous children.

You May Also Like

Apostolos Stamatelopoulos named in Socceroos squad for World Cup qualifier

Apostolos Stamatelopoulos has been named named in the 25-man squad for Australia’s upcoming FIFA World Cup 2026™ Qualifiers.

Over 70,000 Turks used express visas to visit Greek islands in 2024

In 2024, approximately 340,000 Turkish citizens and Europeans of Turkish descent visited the northern Aegean islands.

‘Absolutely unacceptable’: Man arrested over horrific referee attack in Sydney

A 25-year-old man has been arrested over a horrific attack on a Sydney referee that was captured on camera.