(Athens, Greece) – Over the past few days, Greek financial markets have started to rise, which has given international markets a much needed boost. For the past six months, the Greek government has borrowed money at a high rate but over the past few days, this has dropped considerably. Investors are also bolstered by the cooperation displayed between Greece and its international creditors. The end goal is to lighten Greece’s large debt in a way that is mutually beneficial. Although Greece is close to ending its third round of bailout talks very shortly, the consensus is that the country still has a ways to go. Despite, the international markets have responded favorably, which has shown optimism for the future of Greece’s economy.
Greece’s 10-year bonds experienced much lower yields, with the amount falling to around 7.69%, an amount that comes close to the yields experienced in 2010 around the time of the country’s first bailout. The Athens Stock Exchange closed while the market was up around 3.2%. This experienced in boosts in markets across Europe. Many feel encouraged by word out of the European Headquarters in Brussels that the EU is committed to concluding their bailout review as soon as possible. This review is a requirement in order to offically conclude bailout talks. Official EU talks were launched after the Greek Parliament voted and agreed to the austerity measures required of the Greek Government in order to proceed with bailout talks. The markets have been on the rise ever since these decisions.
Greek Prime Minister has said, “Greece is turning the page and leaving six years of darkness behind it. At last, a light has appeared for growth.” However, the reforms and austerity measures aren’t met with total support on the part of the Greek people. Protests broke out over the weekend before Greek Parliament voted to support the austerity measures. The Labor Unions also went on strike last week in order to protest. The austerity measures will result in greater pension cuts, as well as higher taxes. Greece’s debt is expected to hit a peak number of around 180% above the economy’s yearly output. Despite the opposition, Parliament approved the austerity measures, believing that it provides the best long term solution to end Greece’s economic difficulties. In the meantime, the markets are continuing to perform well.