GREECE IS close to attempting a multibillion-euro bond issue in what will be a critical test of the country’s market credibility as it battles a spiralling debt crisis and public sector strikes.
Bankers in Athens expect a syndicated bond issue to be launched within days after Athens yesterday appointed a senior commercial banker as the new head of the country’s debt agency.
The appointment of Petros Christodoulou, general manager for treasury global markets at National Bank of Greece, the country’s biggest lender, fuelled expectations that the government would try to raise €3 billion-€5 billion as early as next week.
Greece’s debt crisis remains acute, with no specific promises of financial support from its euro zone partners and €20 billion of bonds to be rolled over in April and May. However, the interest rate premium demanded by investors in 10-year Greek bonds over German bunds has stabilised this week.
George Papandreou, prime minister, said yesterday during a visit to London: “We are not looking for money from other countries . . . What we are simply saying is: ‘we’d like to borrow on the same terms as other European and euro area countries’.”
A senior finance ministry official said that no decision on a bond issue had been taken.
However, several Athens-based bankers said they expected a launch shortly.
"It's important for Greece to break the ice in the next 10 days and see whether they can raise funds," one senior banker said. – (Copyright The Financial TimesLimited 2010)
