Greek Finance ministry officials expressed satisfaction over the immediate response by European Bank for Reconstruction and Development (EBRD) to a Greek government request to support the development of the Greek corporate bond market.
Economy Minister George Stathakis, during a recent visit to London, met with EBRD president Sir Suma Chakrabarti and discussed the prospect of further raising EBRD’s annual funding to the Greek economy. The bank participated, in the previous 12 months, in bond loan issues by Greek enterprises in the manufacturing and telecommunications sectors, which were addressed mainly to foreign investors and are listed in foreign markets. Finance ministry officials said the bank has made a step further sending an important message to investors.
EBRD covered a 15 pct of the first corporate bond loan in the Athens Stock Exchange, by Housemarket, a subsidiary of Fourlis Group and operator of IKEA stores in Greece. The issue was successfully completed, raising 40 million euros, while bids submitted totaled 50 million euros.
Finance ministry sources said EBRD was ready to participate in new bond issues, supporting the development of a market that can contributed fundamentally in boosting liquidity in the Greek economy.
Frederic Lucenet, director of Manufacturing and Services department of EBRD, commenting on the bank’s participation in the bond loan said it was a turning point in the development and strengthening of the Greek capital market adding: “We are satisfied we were able to support an issue signalling the return of confidence in the Greek market”.
The Greek government has set as priority to exploit all available tools in accessing funds for the real economy, creating a new institutional framework and taking advantage of the activities of International Development Banks in the Greek economy to safeguard funds for the recovery of investments in the country.