The recent fall of Greek bond yields in the secondary market can be attributed to their rising price, as a result of increased demand from international investors, writes Dimitrios Katsikas, ELIAMEP Senior Research Fellow and Head of the Greek and European Economy Observatory, in his article for the newspaper “Fileleftheros”. Katsikas explains how this reflects increased confidence in Greece’s growth prospects and its ability to finance further debt payments. This positive climate is more than just a theoretical statement, but has tangible positive effects. Katsikas points out how, at a secondary level, lower financing costs enhance the sustainability of Greek debt while simultaneously boosting the government’s negotiating strength in its effort to reduce primary surplus targets, a feat that if achieved will certainly increase Greece’s ability to finance debt payments from the state budget.
You can find the article in Greek here.