Economics
Greek Return to Bond Market Is Just Start Down Recovery Road
- Investors see bond issue as first of many to refinance debt
- Tsipras government sees bond sale as step toward bailout exit
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Greece’s much-awaited return to the bond market after a three-year hiatus is far from the end of the road for Europe’s most-indebted nation.
The sale of a new five-year bond on Tuesday was a way for Prime Minister Alexis Tsipras to show that Greece can cut its debt-servicing bill and carve out a path to exit its bailout program. The challenge now for the government is to focus on boosting economic growth and sustain its market access with additional sales across maturities, said Panos Tsakloglou, a professor at the Athens University of Economics and Business, who was a Greek bailout negotiator between 2012 and 2014.