Greece returns to global markets
Four years after crisis, investors rush to place €11bn of orders for five-year bonds
Greece yesterday returned to global capital markets for the first time since the euro zone crisis erupted in 2010, attracting huge demand for its government bonds in a sign of growing investor confidence in Europe’s weakest economies.
Investors rushed to place €11 billion of orders for the five-year bonds, just four years after its debts triggered an international crisis that threatened to destroy the single currency and break up the euro zone.
Following a painful period of austerity and the biggest debt restructuring in history, Greece achieved a primary surplus in 2013. But with high levels of unemployment it remains the weakest link in the 15-year old currency union.
Fragility
As if to underline the fragility of Greece’s recovery, the country’s labour unions embarked on nationwide anti-austerity strike yesterday, forcing schools to close and bringing parts of the public transport network to a standstill. News of the debt sale was barely reported in Athens due to television blackouts.
The €11 billion order book, which is about four times higher than the amount Greece is expected to raise, includes about €1.3 billion from the banks arranging the deal.
And not that long ago...
