Banks dis­cern many ben­e­fits in new pa­per

Kathimerini English - - Focus - YIAN­NIS PAPADOYIANNIS

Greece’s re­turn to the bond mar­kets to­day will have a par­tic­u­larly pos­i­tive im­pact on the econ­omy and the lo­cal credit sys­tem, ac­cord­ing to se­nior bank of­fi­cials.

Do­mes­tic lenders ex­pect to ab­sorb some 1 bil­lion eu­ros from Greece’s first bond is­sue since 2014. The banks will swap pa­per ma­tur­ing in 2019 for the new is­sue, a move set to fetch cer­tain cap­i­tal gains given the dif­fer­ence in in­ter­est rates and the ma­tu­rity pe­riod. Be­sides the swap, lo­cal banks also in­tend to pro­ceed with a slight in­crease in their Greek bond hold­ings.

Bank of­fi­cials told Kathimerini that the coun­try’s re­turn to the mar­kets con­sti­tutes a ma­jor step to­ward restor­ing nor­malcy. If the is­sue proves suc­cess­ful it will give the econ­omy a de­ci­sive boost in terms of con­fi­dence, trig­ger­ing a se­ries of pos­i­tive de­vel­op­ments, from the grad­ual re­turn of bank de­posits and strength­en­ing in­ter­bank trans­ac­tions, to a gen­eral im­prove­ment in the coun­try’s eco­nomic and in­vest­ment cli­mate. Suc­cess, they stress, will de­pend on the par­tic­i­pa­tion of for­eign in­vestors.

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