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 Buoyed by bond yields at a four-year low and a long-awaited deal
with EU/IMF lenders that has unlocked more aid, Athens says it could
issue debt as early as within the next three months.
"Now it is the right time — after all the good news we've had — to
enter markets," Yannis Stournaras told Reuters at his office
overlooking Greek parliament in the central Syntagma square.
"The mood has changed dramatically recently. Simply look at what
happened at Eurogroup — everybody thinks that Greece now is out of
the woods."
The Eurogroup of finance ministers met in Athens this week,
attracting about 5,000 protesters who denounced the latest measures
agreed with the European Union and the International Monetary Fund
to try to make the economy more competitive.
Greek officials have previously told Reuters the initial
post-bailout bond issue will likely be for 2 billion euros ($2.75
billion) of five-year bonds by June, but Stournaras declined to
comment on the sum, saying only that the initial issuance would be
"small".
"It will be a trial and error process," he said.
"What we need first of all is to smooth the yield curve and second,
it is time to see how markets react, because at some time in the
future we have to enter markets completely and finance all of our
needs through markets."
A return now would be among the swiftest comebacks by a country from
default, given Greece imposed losses on private bondholders in 2012.
Asked if Athens would consider a second issue later in the year,
Stournaras said: "If we think that markets are suitable for any
extra issuance we might attempt it but for the moment we consider it
a trial and error process."
There was "huge appetite" from foreign investors for the issue,
Stournaras said.
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He reiterated that Greece did not need additional financing beyond
its current bailout program for the next year and hoped it would not
need fresh aid for the year after that.
"Definitely we don't need new money for the next 12 months. Then for
the other 12 months under certain conditions we might again not need
more money," he said.
"Then, I hope, after that Greece will be fully ready to access
markets completely," he said, confirming that would be in 2016.
After nearly crashing out of the euro zone in 2012, "Greece is
back," Prime Minister Antonis Samaras declared earlier on Wednesday.
Economic data has begun to show signs that a six-year recession is
ending, and the government says it posted a budget surplus before
interest payments last year, making it eligible for further debt
relief from its partners.
Stournaras confirmed Athens would start discussions on further debt
relief from its partners once that primary surplus, which he
estimated at 2.5 billion euros, is confirmed by the European
statistics agency later this month.
Stournaras expects Greece to post growth of 0.6 percent this year,
and unemployment to start falling this year after peaking at 28
percent.
($1 = 0.7263 euros)
(Writing by Deepa Babington; editing by Ruth Pitchford)
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