Greece raises 3 billion euros to offset the impact of the Covid-19

Greece lifted on Tuesday a three-billion euros on the occasion of the issuance of a bond to ten years intended to mitigate the economic consequences of the outbreak of coronavirus, said the minister of Finance.

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The rate of the bond at maturity June 2030 amounted to 1.57% said the Greek Finance minister, Christos Staïkouras. The latter has described the demand of investors and foreign funds for this second fundraising in Greece during the health crisis, the coronavirus of the "new vote of confidence from the international financial community".

According to the financial website Euro2day, the offers for this requirement to ten years "exceeded 15 billion euros," a few hours after the opening of the book offers, while the Agency of the Greek press, Ana, said on Monday that Greece had to raise that 2 to 2.5 billion euros during this program. At the beginning of the year, Greece had raised € 2.5 billion upon the issuance of an obligation to fifteen years, before the emergence of two billion euros in a broadcast to seven years in April. Athens has mandated banks, BNP Paribas, BofA, Deutsche Bank, Goldman Sachs, HSBC and JPMorgan to manage this operation. Last week, Christos Staïkouras, had indicated that the money borrowed in the framework of this new issuance would be used to finance measures to support entrepreneurs and employees affected by the confinement due to the pandemic.

The fear of a recession up to 13%

containment in Greece, which has paralyzed the economy for six weeks, had a significant impact especially on the tourism industry, the engine of its economy. Although less affected than its european partners by the pandemic, Greece will escape a recession, "deep", which could reach up to 13% before a recovery of 5% next year, according to government forecasts.

The support measures announced by the european Commission to member countries and the decision of the european central Bank (ECB) to increase its purchases of public and private debt, have created a climate conducive to the relaxation rates of the Greek bonds, according to experts. The Greek economy is still in recovery after a financial crisis between 2010 and 2018. The country returned to the bond markets in August 2018. At its first bond issue in ten years in a decade in march 2019, the country had raised 2.5 billion euros at a rate of 3.9%.

1 commentairerichard benhaddile 09/06/2020 at 22:19

here we go again ! In 3/4 years the idiots who have bought it will realize that the country is not solvent ... with olive oil and tourism there is no economy ... it is beautiful the need of the markets

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