Greece back to bond market #greece

Europe’s leaders argue that only deep budget cuts will revive the economy and inspire the necessary confidence among investors.

The deal represents a major milestone for Greece, which was effectively shut out of the markets in 2010 when the debt crisis left it dependent on international bailouts to stay afloat.The bond sale reflects increased optimism that Greece and other wobbly euro zone countries have turned a corner. In recent months, borrowing costs dropped significantly for Ireland, Portugal, Spain and Italy, as the investors deemed them less risky.

Unemployment in Greece rising at 27 percent. The bonds of both Portugal and Ireland have been in strong demand since those countries returned to the markets earlier

As a result, borrowing costs among the most troubled euro zone economies have been falling fast.fears are gone. The economy is stabilizing, with the International Monetary Fund recently raising its forecast for growth this year, to 0.6 percent. Greece has met a number of fiscal targets, and the government recently announced a primary surplus — a surplus before debt payments — of about €2.5 billion.

But Greece still has numerous economic hurdles to overcome, including a mountain of debt that will take decades to repay. Economists said Greece would need annual economic growth of nearly 5 percent over the next decade to make progress in paying off what it owes creditors. Greece also needs an export-driven recovery.

Related Posts

  • 86
    The European Debt Crisis Visualized
    Tags: debt, europe, economy
  • 79
    Source : There is a common misconception that the euro area is a monetary union without a political union. But this reflects a deep misunderstanding of what monetary union means. Monetary union is possible only because of the substantial integration already achieved among European Union countries – and sharing a…
    Tags: countries, euro, economic, europe
  • 77
    There is no reason to further extend a European Union deadline for France to cut its budget deficit, the EU's top economic official said on Saturday, adding policy-makers should have learnt the lessons of the debt crisis and stuck to agreed rules. In June last year Paris got two more…
    Tags: percent, economy, economic, debt, europe
  • 75
      Feb 8 (Reuters) - If Greece is forced out of the euro zone, other countries will inevitably follow and the currency bloc will collapse, Greek Finance Minister Yanis Varoufakis said on Sunday. Greece's new leftist government is trying to re-negotiate its debt repayments and has begun to roll back…
    Tags: will, euro, greece, debt, zone, europe, economy
  • 74
      German government bond yields jumped on Thursday as a rout in euro zone markets worsened, putting them on course for their biggest weekly rise in over a decade. Yields on 10-year German bonds -- the bloc's benchmark -- rose as much as 20 basis points to hit 0.799 percent,…
    Tags: bond, zone, euro, europe, markets, percent