“The market conditions are good for a new bond issue over the summer,” the unnamed Finance Ministry official is quoted as having said.
The Reuter’s report was corroborated by an article in the Kathimerini newspaper stating that Finance Ministry sources had told the newspaper that the ministry is ‘processing various plans concerning the new bond issue, with the likeliest being for an issue in July.’
According to the same article the issue had been raised with the country’s lenders who viewed the move neither positively nor negatively.
The plans over the bond issue have been said to be independent of its progress meeting its obligations under the bailout programme. The government spokesperson Sofia Voultepsi, commenting on the Reuters article, stated, “neither the government’s commitment to fulfill the demands required for the funding of the country to continue smoothly, nor the positive recent developments in the economy are the basis for any actions such as those indicated by [the Tuesday] report that cites a statement by a senior Finance Ministry official. Greece’s next return to the markets will happen whenever it is required, but by choice and not necessity.”
The reports indicate that the government will be looking to take advantage of the relatively low interest rates that are currently available. Yesterday the country raised 1.3 billion euros via the issue of 13 week Treasury Bills at an interest rate of 1.8%. A similar sale on the 13th of May had an interest rate of 2.13%.
According to the Kathimerini, the government will be looking to complete the next bond offering before the troika returns to the country for its next main inspection of the Greek programme. This is due in August and could last several months with the troika potentially demanding new measures and increasing the climate of uncertainty, thus making a bond issue in the fall or winter more difficult.