Greek Bonds

Bloomberg notes that the ratings of Greek bonds by the agencies and the possible upgrading of Greek bonds to investment level may be enough to turn around the economy and open the door for participation in the ECB programme.

The performance of Greek bonds improves the profile and viability of the national debt and at the same time iopens the way for businesses to borrow more cheaply and refinance old loans.

The proper stride for an economy entails economic stability, endurance, and being shielded from the shocks of the global economic system.

Investors are not afraid that they will lose their money as was evidenced by the great demand for the seven-year bond.

The finance ministry believes that the large cash reserves even under the most conservative assessment are sufficient to cover its mixed funding needs at least for the next two years.

Creditors will determine whether the assumptions on which the draft budget is based - a 2.5 percent growth rate and a 3.56 percent primary surplus – can be achieved without resorting to the politically painful pension cuts measure.