Greece Negotiating Credit Line as Shield After Bonds Fall
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Greece is negotiating with its international creditors over a possible precautionary credit line that would be available should market borrowing costs spike after the nation exits its rescue program, Prime Minister Antonis Samaras said today.
Samaras spoke at the end of a week when Greek sovereign bonds slumped on market jitters over his plan to sever the 240 billion-euro ($307 billion) lifeline that has kept the country afloat since 2010. Greece’s 10-year yields dropped 102 basis points after his comments. At mid-week, the Greek 10-year yield increased the most since July 2012.