(Greece) -George Houliarakis, a deputy Finance Minister, has said that Greece plans to return to the international debts market, which involves the buying and selling of government bonds, next year in 2017. In this market, only foreign corporate and government bonds are traded. Greece hasn’t been part of this international bonds market since 2010 around the time of the first bailout. Houliarakis has said that Greece’s entrance back into this market will depend on a variety of factors, including the return of economic growth.
If economic growth doesn’t return, it is unlikely that Greece will return to the bonds market on schedule. In fact, Greece had hoped that they would be able to enter into the market once again by the last half of 2016 but the approval of the most recent bailout package will make that unlikely. Another factor that will determine whether or not Greece will return to the bonds market is if the sovereign borrowing rates continues to drop. Although Greece hasn’t fully been part of the debt markets since 2010, they did attempt to return about two years ago.
Now that the third bailout is underway, the interest rates on Greek government bonds have let up somewhat, which gives the Greek Finance Ministry hope that Greece will be able to enter into the international debts market in a few years. International markets in general have been up somewhat since the Eurogroup announced that they approved the latest bailout.
Houliarakis said, “Regarding our return to the markets, it’s our view that as soon as the economy is stabilized and begins to recover … it will occur slowly in 2017. Our aim is not to return quickly but to build trust. We don’t want to rush back in just so we can celebrate.”
Last Sunday, the Greek Parliament voted in favor of the newest round of austerity measures, which prompted the Eurogroup to eventually approve the bailout. Although they have left the international bond markets, Greece has continued to sell short-term debt since its first bailout in 2010. However, interest rates on these government bonds have been high. With the newest round of bailout talks behind them, Greece predicts that the interest rates will ease just enough for them to enter back into the markets in 2010.