Greek bonds’ 47 per­cent re­turn is a world beater

Kathimerini English - - Front Page -

Greek bonds re­turned al­most four times as much as any other gov­ern­ment se­cu­ri­ties this year as the na­tion that sparked Europe’s sov­er­eign debt cri­sis moved to­ward eco­nomic re­cov­ery af­ter six years of con­trac­tion. Greece’s 47 per­cent year-to-date re­turn was the best of 34 sov­er­eign debt mar­kets tracked by Bloomberg World Bond In­dexes. The sec­ond-best per­former with 12 per­cent was Ire­land, which ex­ited its in­ter­na­tional bailout pro­gram on De­cem­ber 15. Greece may record a pri­mary sur­plus in 2014 that would qual­ify the coun­try for ad­di­tional debt relief un­der an ac­cord with its cred­i­tors, Moody’s In­vestors Ser­vice said on Novem­ber 29. “We are con­struc­tive on Greek gov­ern­ment bonds,” Elga Bartsch, chief Euro­pean econ­o­mist at Mor­gan Stan­ley, said at a brief­ing in Lon­don on De­cem­ber 2. Gross do­mes­tic prod­uct “should sta­bi­lize and then start to grow. They will get some ad­di­tional help,” she said. Greek as­sets are win­ning fans as fixed­in­come, cur­rency and de­riv­a­tives mar­kets show the cri­sis that gripped the euro area from 2009 is fi­nally fad­ing. With Euro­pean Cen­tral Bank Pres­i­dent Mario Draghi stick­ing by his pledge to back­stop the re­gion, in­vestors are re­turn­ing to Greek se­cu­ri­ties, even af­ter the na­tion’s fi­nan­cial trauma caused pri­vate bond­hold­ers to write off more than 100 bil­lion eu­ros in 2012.

NCH Cap­i­tal on Corfu.

NCH Cap­i­tal Inc, a US pri­vate eq­uity firm, won per­mis­sion from the Greek gov­ern­ment to build a tourist re­sort on the is­land of Corfu. NCH, based in New York, will spend 23 mil­lion eu­ros on the lease­hold and in­vest about 75 mil­lion eu­ros to de­velop a ho­tel, ma­rina and pri­vate hol­i­day homes, said Andi Ballta, the firm’s man­ag­ing di­rec­tor for the Western Balkans and Greece. “We were look­ing at Greece way be­fore any­one con­sid­ered in­vest­ing there and that’s put us ahead of the com­pe­ti­tion,” Ballta said. Con­struc­tion may start as early as 2015, he said.

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