Greece’s first exit to markets for 2022

With a new 10-year bond, Greece is making its “premiere” in the markets for this year, as according to a relevant announcement, P.D.M.A. has instructed the six contracting banks – Barclays, Commerzbank, Eurobank, Morgan Stanley, Nomura and Societe Generale – to run the issue, with the book of offers expected to open tomorrow.

The best performance for 2021 comes a few days after the upgrade of the prospects of the Greek economy by the Fitch rating agency and the package of positive news paves the way for the preparation of the new exit of Greece to markets and the first of the year with the possible issuance of a long-term title, amounting to close to 3 billion euros.

According to sources in the Ministry of Finance, the estimates now bring the deficit below 7% for 2021 and thus further improve the debt picture – especially if the estimates for a recovery of more than 7% are confirmed. Regarding 2022, a source from the Ministry of Finance states that the target of 1.4% of GDP for the primary deficit remains and expressed optimism for the course of the pandemic, while in fact he estimated that the main indicator is the course of natural gas.

The new title will expire in June 2032, with the aim of achieving an interest rate below 2%. It is noted that the 10-year bond issued in 2021 has a yield of 1.65% while it was issued with a historically low interest rate of 0.807% (at 0.888% the yield during the re-opening in June) and with a coupon of 0.75%.