Concerns resurfaced on debt Greek
The rumor is part of a report released on Tuesday, lending to Greek leaders intend to negotiate the terms of any financial assistance from the EU and the IMF. Despite an immediate denial from the authorities of countries, markets have overreacted to information. In the wrong direction. Yesterday, the debt rate in Greece has reached new heights. The rate of ten-year bond rose to 7.161% before closing at 6.995%. One to two years saw its rate jump to 6.48% before closing at 6.11%.
The differential between the Bund and the Greek loan ten years, the German borrowing considered the benchmark in the European bond market, reached 391 basis points, a highest since late January. A level also close to 396 points reached at the height of the crisis.In other words, Greece must now pay twice as much as Germany to borrow on the markets.
In this tense atmosphere, the euro sank to its lowest level since March 26, to $ 1.33 against $ 1.35 last week. The tension on the Greek rate has rubbed off on the rest of European rates. Thus, the obligation comparable Treasury (OAT) French grew at 3.472% against 3.391%. The rate of Gilt UK has also tended to 4.004% 3.917% Thursday cons. The 10-year German Bund rose to 3.145% 3.080% cons Thursday night.
"It was a very bad day for Greek bonds," said Greek Finance Minister George Papaconstantinou.The latter also wished to refute the rumors again: "There was never any action on our part to change the terms of the recent European agreement on the mechanism of support," he said cheap pay day loans .
A difficult month of May
This renewed tension on the market does not bode well for the country that has yet to find 20 billion euros by the end of May to repay debt is estimated at 300 billion euros, or 113% of GDP. Macroeconomic statistics are not reassuring either. According to the European Commission, the economy needs to contract by 2.5% against 2% initially estimated.The deficit also revised upward, to reach 13% of the GDP against 12.7% of the initial estimate used as the basis for projections of the annual budget.
Asian investors, including Chinese and Japanese funds, show little enthusiasm for the idea of buying Greek bonds. George Papaconstantinou, which announced its intention to borrow dollars, must travel to the United States after April 20 to find new potential buyers.
In this context, IMF teams have to land Wednesday at Athens, at the request of the Government, to advise the country. The IMF should include a focus on fiscal discipline and the fight against tax fraud.A visit also intended to reassure markets that are questioning the viability of the proposed plan by the Greek government.
ALSO READ:
The bargain debt Greek
"SPECIAL CASE – Greece, a challenge for Europe