🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-Greece to up 2009 borrowing to 50 bln eur-finmin

Published 04/28/2009, 08:13 AM
Updated 04/28/2009, 08:16 AM
TTEF
-

(Adds debt agency chief comment, details, background)

ATHENS, April 28 (Reuters) - Greece will borrow a total of 50 billion euros ($65 billion) this year, more than a previous target of 43.7 billion, the country's finance minister said on Tuesday.

"To shield against a possible worsening of the crisis, we decided, even though we do not need the money, ... total borrowing will reach 50 billion euros," Finance Minister Yannis Papathanassiou said in a statement.

Greece borrowing sortie a day earlier, via a re-opening of a 4.3 percent 3-year bond, was well received by investors with order books reaching 13.5 billion euros. Greece borrowed 7.5 billion.

Greece is the euro zone's second most indebted economy after Italy. Public debt rose to 97.6 percent of GDP last year from 94.8 percent in 2007, according to Eurostat.

"A few months ago some were saying our country would not be able to borrow on international markets. They were projecting that it would be necessary to turn to the IMF," Papathanassiou said. "All these doomsayers were proven wrong."

The financial crisis widened the premium Greece must pay on its bonds compared to higher-rated core European issuers like Germany -- at a time when a slowing economy and weak government revenues boost public borrowing needs.

The 10-year spread between Greek and German benchmarks, which hit a record high above 300 basis points in Feb, stood at 217 basis points on Tuesday.

The head of Greece's debt agency (PDMA) told Reuters on Tuesday there were no thoughts to cancel planned dollar and yen- denominated issues.

"We do not intend to cancel the dollar and yen issues if market conditions allow us to meet our goals in terms of cost," PDMA chief Spyros Papanicolaou said."

He said the re-opening of a 10-year benchmark by June would probably be the last syndicated issue for 2009. (Additional reporting by Lefteris Papadimas) (Reporting by George Georgiopoulos; editing by Ron Askew)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.