Greek Prime Minister George Papandreou’s decision to seek a bailout for his nation before the terms of the aid package are defined shows he’s willing to do “whatever it takes” to get the funds, BNP Paribas SA said.
“Greece did not wait for the conditions to be announced,” Ioannis Sokos, a London-based interest-rate strategist at BNP Paribas, said today in a telephone interview. “This means they are willing to take any possible measures. To me this is a positive.”
Greece today asked to activate a financial lifeline for as much as 45 billion euros ($60 billion) from the European Union and International Monetary Fund. The EU said the terms of the aid package may be agreed upon “in a matter of days.”
The request may not be enough to help Greek bonds recover from declines that pushed 10-year yields to the highest since at least 1998, Sokos said.
“The whole uncertainty is with respect to the unanimous decisions needed” from EU member states, he said. “This risk is still there.”
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