Greek Bonds Need to Say ‘Carpe Diem’
The window for a Greek bond sale looks open, and it doesn’t have to stay that way.
How about a little Latin lesson?
Photographer: Louisa Gouliamaki/AFP/Getty Images
Greece is approaching the threshold of a full return to the club of stable European countries that can issue debt at will. It can take a big step in that direction by issuing bonds. Officials have perhaps realized this, and they’re gauging investor demand with a U.S. roadshow on their economy. Hopefully, they also realize that the current friendly market conditions don’t have to last.
Yields on Greek bonds are right around their best levels this year. The terms resulting from the June 21 Eurogroup meeting are generous, with 8 billion euros ($9.4 billion) of extra cash and a 10-year extension on repaying its outstanding debt to the European Union. This paves the way for a smooth exit from its third bailout this summer. It now has a 24.1 billion-euro cash buffer, and any new bond deals would increase this further.