Thursday, March 5, 2015   

Greece elated by heavily-oversubscribed 3b euro bond sale
(04-10 18:18)

Heavily-indebted Greece made a successful return to the bond markets today, ending a four-year exclusion, raising 3 billion euros. It sent a major signal that the euro zone debt crisis is fading.
“A sum in the order of 3 billion euros will probably be raised,'' government spokesman Simos Kedikoglou told To Vima radio, adding that the interest rate was “below 5 percent.''
(Pictured, investigators seek clues amid the remains of a car bomb outside the central bank).
The bonds have a life of five years, and this return to the medium-term debt market is a milestone for Greece. The country remains in a recession, AFP reports.
Deputy Prime Minister Evangelos Venizelos told reporters that the sale had been “at least eight times oversubscribed'' and termed the sale “a huge success.''
Reports and analysts said the operation pointed to an interest rate paid by Greece of 4.95 percent, which would mark another success in achieving a rate below 5 percent.
The sale is a big step in Greece's financial resurrection after two EU-IMF bailouts.
It was timed a day before a scheduled visit by German Chancellor Angela Merkel, and originally designed to raise 2.5 billion euros.
Hours before the sale, a car bomb exploded outside the Bank of Greece in central Athens.
Ishaq Siddiqi, a market strategist at ETX Capital said: “The move by Greece at first to return to the bond markets appears to be opportunistic and somewhat symbolic as the country clearly wants to be able to raise its own funds.’’
The last issue of five-year bonds four years ago carried an interest rate of 6.1 percent.
Athens' move was welcomed by the International Monetary Fund, which along with the European Union and the European Central Bank, has provided huge financial support for the stricken economy.
The bond issue comes against a background of sharp falls in recent months in borrowing rates for other euro zone countries hit by debt problems.

Other Business breaking news:
(Fed transcripts) Bleak but accurate forecasts in 2009; dilly-dallying with politics (52 mins ago)
(Fed transcripts) Debates amid economic malaise and financial markets turmoil (1 hr 3 mins ago)
Nikkei positive at break (2 hrs 5 mins ago)
Hang Seng falls at break (2 hrs 18 mins ago)
HK, Shanghai ease on sell-off (03-05 10:58)
Greece pays more for debt issuance (03-04 19:22)
IMF tells Sri Lanka no immediate need for US$4b loan (03-04 18:39)
RBS to shed 14,000 investment banking jobs (03-04 17:50)
Court annuls ECB’s clearing houses requirement (03-04 17:41)
Toyota elevates Frenchman, American to management ranks (03-04 17:36)

More breaking news >>

© 2015 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2015, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.