It was in the air for days. As anticipated by il manifesto a week ago, Greece today went back to the financial markets after more than three years by placing medium-term bonds with a five year maturity. This is a fundamental step that comes after a long economic crisis and is greeted enthusiastically by both the Tsipras government and the E.U. Commissioner for Economic and Monetary Affairs Pierre Moscovici.
This placement in the markets was possible thanks to some positive developments in the Greek economy in recent months. Since the Eurogroup’s decision, when E.U. finance ministers secured Athens the €8.5 billion needed to repay creditors, Moody’s changed its rating on Greece from “Caa3” to “Caa2.” Another positive factor was the exit from the excessive deficit procedure, decided by the E.U. Commission, as well as the “maximum” participation of the IMF in the aid program. A participation conditional to cuts in Greek public debt.
In the notice released from the government in Athens, this is a “key decision for Greece to recover a stable and sustainable access to international markets.” The government would aim to place the five-year government bonds with an interest rate around 4.2 percent or just below the 4 percent threshold.