Actions to hedge against rising interest rates by Greece’s Public Debt Management Agency (PDMA) over previous years ultimately allowed the Greek state to recently borrow 41-percent lower than the current market rate for 10-year bonds.
Specifically, the Greek state made its first foray into the markets last Tuesday for 2023 with the issue of a 10-year bond, as strong demand was reflected in the over-subscription of the issue by 6.26 times. Offers exceeded 21.9 billion euros, with the country eventually draining 3.5 billion euros from the markets, reportedly meeting half of its borrowing needs for 2023.
A 4.25-percent annual coupon that the Greek state will pay to the 230 investors who participated in the issue will, however, have a lower real cost, around 2.5 percent, since the remaining 1.75 percent is covered by risk-hedging actions that were taken in previous years, as loans dating to the first memorandum bailout of 53 billion euros that were “discarded” through swaps mean that for every 1-percent increase in borrowing costs, Greece would obtain (if it subscribed) a profit of 4.5 billion euros
στο Google News και μάθετε πρώτοι όλες τις ειδήσειςLatest News
FT: Greece’s Economic Rebound a Balance of Growth and Poverty
Eurostat data revealed a significant 10.8% drop in Greek public debt relative to GDP in 2023, alongside a 2% economic expansion, outpacing Germany's performance.
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%
Store Hours Change Today in Observation of Orthodox Easter
The President of the Athens Chamber of Commerce hopes the Easter period will provide a much-needed boost to retail traffic in the capital
Athens-area Mass Transit Systems Set to Finally Install Contact-less Fare Payment
Paying fares via bank cards, smartphones and smartwatches in all mass transit systems in the Greek capital, namely, buses, trolleys, the metro and tram lines, is scheduled by the end of the year
Council of State Rejects Motion Against Thessaloniki Motorway Project
The motion was filed earlier this month by three local citizens’ and environmental groups and generated a high court decision for a temporary stay in construction
Greek 30Y Bond Issue Oversubscribed by 11 Times
Very high demand pushed down the coupon's interest rate to 4.125%
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
