Greece may return to the markets in 2017

Optimism for Greece’s return to the markets in 2017 was expressed by Klaus Regling Director of the European Stability Mechanism (ESM), in a recent interview with Greek media.

Regling hinted at the possibility, provided he said, the Greek government stuck to the reforms programme and ensure a primary surplus by the mid-term.

Despite the fact that speculation about a possible British exit from the European Union is causing uncertainty in capital markets, Finance Ministry officials remain focused on seeing Greece making a return to markets in 2017.

“I think Greece should be able to go back to the markets in 2017 provided the government follows the agreed reform path under the ESM program,” he told Greek media.

“Also, the government should implement credible fiscal policies with a primary surplus over the medium term,” he added, without going into specifics.

The head of the ESM, which is Greece’s biggest lender, points out that “In the summer of 2014 Greece demonstrated that a return to the market is possible by successfully issuing a 3- and a 5-year bond.”

“Therefore I recommend that Greece should be cautious in the beginning and not borrow too much on the markets. But the government should test it before the end of its ESM program just as other countries did before they exited their programs,” he said.