On April 10 Greece re-entered the bond markets with its first launch of long-term bonds in four years. Investor interest was extremely high and the issue was massively oversubscribed. More important, this move signals confidence by global markets and demonstrates the belief that Greece has succeeded in its ambitious reform policies of the last five years and continues to gain speed.
Stephanos Issaias, CEO of Enterprise Greece, said, “Greece has followed an arduous but necessary path in a demanding fiscal adjustment program. Today, the results are evident and clear. The markets are embracing Greek bonds, and at lower rates than initially predicted. Investors from around the world are turning their attention to Greece in increasing numbers and I am confident they will recognize, even more so now, the vast potential Greece offers.”
Other Positive Signs
In a parallel development, just two days before the bond sale, on April 8, Fairfax Holdings of Canada announced that it agreed to acquire Praktiker Hellas. “We continue to believe in the recovery of the Greek economy under the leadership of Prime Minister Samaras,” says Mr. Prem Watsa, Chairman & CEO of Fairfax. “Greece continues to make significant progress in revitalizing the economy by encouraging foreign investments that create positive momentum, thereby enhancing both employment and sustainable economic growth.”
In addition, on April 8, the International Monetary Fund announced that it expects Greece to return to Growth in 2014. Significantly, Greece also recently announced a primary surplus of 2.5 billion Euro.
“Each of these factors is a strong indicator that Greece is becoming a great turnaround story. 2014 will be the year that sees a return to growth, a return to the markets, and a return of confidence,”
