With yet another publication, the German press refers to the positive course of the Greek economy.
"As soon as the rating agencies deliver their verdict on the bonds, Greece could be upgraded again from the group of emerging economies to the developed stock market states," said the Süddeutsche Zeitung newspaper.
"In 2021 and 2022, the Greek economy grew by 8% and 6%, respectively. Even this year, with more than 2% growth, it is expected to grow twice as dynamically as the European average," it noted, making special reference to the Greek debt that makes the market of Greek government bonds attractive.
"Since the beginning of the year, the Athens Athex index has risen more than 44%, even surpassing the American Nasdaq index," the German media writes.
“The risk premium on Greek government bonds is also lower now than that of Italian government bonds, which are considered healthier. Greece is poised to enter a golden age," says fund manager Malcolm Dorson of US investment firm Global X.
"Instead of betting against the country, financial professionals are now betting on it. Conditions have changed significantly since the height of the financial crisis when Greece was almost out of the euro.
"In 2021 and 2022, the Greek economy grew by 8% and 6%, respectively. Even this year, with more than 2% growth, it is expected to grow twice as dynamically as the European average.
"For green and innovative development, Greece has already drawn 30 billion euros that will be spent on hundreds of projects, such as the extension of the metro in Attica, the domestic production of hydrogen and the construction of the airport in Kasteli, Crete."
The Munich-based paper further explains how the characteristics of Greek debt make the Greek government bond market attractive : "The debt level in Greece no longer exceeds 200% of economic output, but has fallen to 171%.
"But even this mountain of debt is about 3/4 in the hands of public creditors, such as the European Stability Mechanism. Moreover, the debt ratio is likely to decrease further in the coming years."
Awaiting promotion to investment grade
At the same time, as was demonstrated during the pandemic, "Greek Prime Minister Kyriakos Mitsotakis is faced with cumbersome approval procedures, excessive bureaucracy and poorly transparent regulations."
"The fact remains that unemployment is still high, the minimum wage is low, and the economy is dependent on tourism and construction. But many bond investors now have a very specific hope: they have been betting for weeks that at least some rating agencies will probably label the country as 'investment grade.'
"Once the rating agencies issue their verdict on the bonds, the country could be upgraded again from the group of emerging economies to developed stock market nations."
SZ finally concludes that "there are also some, like stockbroker Nikos Chrysochoidis, who remain restrained. To sustain growth in the long term, Greece will have to stick to its reform path.
"The country has become more serious since the crisis," said the stockbroker.
More serious because of the deprivations, more serious in its politics, more serious in the stock market. It's still a bit of an unusual condition, Chrysochoidis says. But he believes that this new seriousness suits the country.
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