April 28 (Bloomberg) -- Greek government bonds are worth buying at 61 cents on the dollar because European Union officials must agree a bailout package, said Eric Kraus, a strategist at Otkritie Financial Corp., a brokerage part-owned by Russia’s second-biggest bank.
“Sooner or later those morons in Brussels and Berlin will realize that they are playing with fire, have already been burned, and will have to stop feeding the flames,” said Kraus. “Then we should see a very nice bounce.”
Greek government dollar bonds due in 2013 plunged to 60.714 cents from 76 cents yesterday, lifting the yield to 24 percent, prices on Bloomberg show.
“Bailing out Greece would be a very expensive undertaking but not bailing it out would almost certainly be far, far more expensive,” said Kraus. “The question is not whether the Europeans will pay, but in what form, and by what timing, and how much damage will be done.”
Otkrite is part-owned by VTB Group.
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