Greece takes small step on road to recovery

viernes 11 de abril de 2014 12:11 GYT
 

* New trade shows progress although risks remain

* Bond wobbles in secondary as weaker markets take their toll

By Sarka Halas

LONDON, April 11 (IFR) - Greece's first bond issue since it inflicted painful losses on bondholders two years ago was hailed as the kick-start the country needs to drag itself out of the financial crisis and the latest sign that Europe has turned a corner on its crisis.

But on Friday the bond suffered in secondary as the wider market weakened leaving open the question of how successful its comeback trade really was.

After Ireland and Portugal, the sovereign was the final bailed-out country to make a return to the eurozone bond market, but unlike them, it faced the challenge of having to win over investors after its 2012 debt restructuring.

"This transaction is a game changer for Greece and puts the country in a totally different light with its creditors and the troika," said Hakan Wohlin, head of global debt origination at Deutsche Bank, one of the banks on the deal. "This deal shows that Greece has market access, at sustainable rates and in size."

He added that while it was helpful to have central bank liquidity, this was not the sole reason for Greece's success.

"Investors really believe that Europe has turned a corner and a huge amount of structural reforms have taken place in Greece and in other countries."   Continuación...