Preparations for Greece to return to the markets
Greece is preparing to return to the markets with a bond, albeit of limited force (EUR 3 billion) and for this purpose, there are already discussions with financial advisors.
The aforementioned agenda is expected to be discussed and during the two-day visit to Athens next Thursday and Thursday, of the Economic Affairs Commissioner Pierre Moscovici. The French commissioner accepted an invitation to speak before the Greek-French Chamber of Commerce in Athens. On the occasion, Pierre Moscovici will meet with the competent Greek authorities regarding the course of the Greek economy and the fulfillment of the country’s commitments after the end of the program last summer.
All of the country’s funding scenarios in 2019 are included in the finance ministry’s financing plan and all include bond issuance, which could be done in stages.
For the country’s financing plan (EUR 9.2 billion for 2019) three scenarios are envisaged/considered:
– Issuance of EUR 3 billion bonds, EUR 5 billion taken of the cash reserve and EUR 1.2 billion ANFA
– Issuance EUR 5 billion of bonds, EUR 2.4 billion euros taken from the cash reserve and EUR 1.2 billion ANFA
– Issuance of EUR 7 billion bonds, 1.1 billion euros taken from the cash reserve and 1.2 billion euros of ANFA
In the last two scenarios, EUR 1.4 billion are also coming from privatizations.
In the following period, both the visit of foreign officials (apart from Merkel that came to Athens and Moscovici who is expected) in the country and the coming of institutions (end of January) may be helpful in this endeavor. A positive pilot exit to the markets could forecast a positive further course for Greece, which is something it desperately needs.
The repayment of part of the country’s expensive loans to the IMF and the ECB is a major challenge for the government, in order to reduce the cost of the service of public debt.
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