Kyriakos Mitsotakis plans to issue of a 7-year bond
Greece announces bond issue under the new government. According to the Associated Press, the new government of Prime Minister Kyriakos Mistotakis plans to issue of a 7-year bond. It will be the first under the new government.
In a report published Monday, 15. July, Public Debt Management Agency of Greece listed banks on the control of running the auction. PDMA reports are usually presented on the eve of the auction.
Greece is deemed to establish a 2.5 billion-euro ($2.8 billion) goal for its latest bond issue. That should complete market borrowing requirements for this year.
The previous bond auctions were successful. The government under Syriza and ex-prime minister Alexis Tsipras issued 5-year and 10-year bonds.
Greece rose funds on bond markets after a series of three consecutive international bailout programs.
Low yields in EU countries were helpful.
The new prime minister, Kyriakos Mitsotakis, has chaired his Cabinet’s first meeting. He promised to reform the system of governance. The main goal is to improve the everyday lives of Greeks, he said. Also, he urged the other members of the new government to follow this intention.
Greece’s conservative New Democracy party won the national election on July 7, 2019. This party defeated the ruling Syriza party.
New Democracy returned to power with decent success in snap elections. Prime Minister-elect Kyriakos Mitsotakis said he had a definite mandate for change, promising more investments. Also, he promised to decrease taxes.
“I am committed to fewer taxes, many investments, for good and new jobs, and growth which will bring better salaries and higher pensions in an efficient state,” Mitsotakis said.
Greece had a positive result after analysis by its EU partners who loaned Greece billions.
The economic matters in Greece
The focus is on Mitsotakis’s choice for the key economics ministries – finance, energy, and development. The minister of Foreign affairs come along with them.
Mitsotakis inherits an economy that is growing at a moderate growth. It is at a 1.3% annual pace in the first quarter of this year.
The public finances may fall below the targets accepted with lenders.
The Bank of Greece predicts that 3.5% of GDP primary surplus target without debt servicing outlays is possible to be missed this year. Its prediction is that Greece can reach 2.9% of economic output reasonably.
The fiscal policy of the new government has to be rigorously watched.
But, the true test will be next year’s budget.
People in Greece live on the financial edge.
The young people are leaving the country in order to find jobs outside their country, in the EU.
Greek unemployment of 18% is the highest in the EU.
Greece remains under monitoring from lenders guarantee to avoid potential future fiscal slippage.
The economic growth has returned since Greece wrapped up its last economic adjustment program in 2018.
New Democracy has promised to create well-paid jobs. Honestly, they will have a hard job to answer the activities in some parts of Athens, where powerful anti-establishment movement is alive.
Living in Greece is difficult
The average monthly salary in Greece is about 600 euros. People, especially the young, are struggling to find decent jobs because of the absence of big international companies.
The expense of living in Greece is relatively lower than in the rest of Europe. But despite romantic expectations, it is difficult and struggling.
The per capita income is 18,613.42. That is almost 1/5 of Switzerland’s, for example. Yes, goods are cheaper there than in the rest of Europe. But the average salary isn’t enough so the people are hard to survive from pay-check to pay-check.
The new government has a great challenge.