Greece has announced it is returning to international bond markets for the first time in four years and has mandated international banks for an upcoming five-year bond issue denominated in euros and under UK law. The transaction will be priced and take place in the immediate future, the Finance Ministry stated yesterday. The issue is expected to be concluded today, while it is estimated the country will issue five-year bonds amounting to €2.5 billion. The process is being launched officially today when JP Morgan and Deutsche Bank –the underwriters of the issue- will commence a book building process.

“The successful restructuring of the banking system and the recapitalization of banks from the market following the latest stress-test exercise have facilitated the way for the Greek government to tap the market,” said George Provopoulos, Governor of the central bank of the country, and is also a member of the European Central Bank’s Governing Council, in an interview in Athens yesterday.

Greece will return to growth this year and will achieve a stronger economic growth rate in 2015, the International Monetary Fund said in its World Economic Outlook (WEO). In the six-month report, released on April 8, the   IMF said the Greek economy was projected to grow by 0.6% in 2014 and by 2.9% in 2015, while unemployment was expected to fall to 26.3% this year and to 24.4% in 2015.

The IMF, however, expects low inflation rates to continue in the country, with the inflation rate at 0.4% in 2014 and 0.3% in 2015.

More information: IMF WEO "Recovery Strengthens, Remains Uneven" (April 2014)