Friday, October 10, 2014
Greece can cover its financing needs from the bond markets in the coming years, without bailout funds next year, Prime Minister Antonis Samaras said in an interview with Bloomberg news agency on October 8 after the European Union summit.
An improvement in public finances and low interest rates have emboldened Samaras, who said the Greek parliament will discuss the end of aid from the euro area and International Monetary Fund in a confidence-vote debate scheduled to run through tomorrow. Greek bonds are the best-performing securities in the Bloomberg indexes this year, having earned 20% through October 8.
The yield on 10-year debt fell as low as 5.52% on September 8, the lowest since early 2010. Even after a selloff in the past month, that compares to a record high of 44% in March 2012, on the eve of the world’s biggest-ever debt restructuring.
The yield on 10-year debt fell as low as 5.52% on September 8, the lowest since early 2010. Even after a selloff in the past month, that compares to a record high of 44% in March 2012, on the eve of the world’s biggest-ever debt restructuring.
Ending aid payouts wouldn’t mean "a divorce" with Greece's public creditors, Samaras stated. "We want to do it properly," he said and added that Greece is prepared to negotiate an appropriate mechanism to have its economy overseen within the euro area. Asked how confident he is that Greece can survive without support, Samaras said: "absolutely."
