ZCZC
BCN-10
ITALY-GREECE-EU-IMF
Greece worried but prepared for Italy turmoil: officials
ATHENS, May 30, 2018 (BSS/AFP) – Political turmoil in Italy which has
caused broader eurozone anxiety will not affect Greece’s plans to return to
the debt markets in the summer, officials said Tuesday.
“We are watching developments in Italy…with some concern, but I don’t
think they will have a negative effect on the course of the Greek programme,”
government spokesman Dimitris Tzanakopoulos told state TV ERT.
Greece, which has been bailed out three times by fellow eurozone states,
is scheduled to wrap up its latest multi-billion support programme on August
20.
Athens henceforth intends to borrow on financial markets. But with its
economy still in a fragile recovery, investors are likely to demand steeper
interest rates, especially if eurozone jitters persist.
On Tuesday, the yield on the benchmark 10-year Greek bond rose to 4.8
percent from 4.49 percent previously.
Economy minister Yiannis Dragasakis told parliament on Tuesday that the
country was prepared to handle a short-term crisis, noting that Greek banks
had recently passed EU stress tests.
“These developments do not take us by surprise…Greece has several
options at its disposal to address (them),” said Dragasakis, referring to a
multi-billion cash cushion Athens has been building in agreement with its
creditors in recent months.
But if the upheaval continues, “it is clear that the endurance of each
country will be tested separately, and the European Union should consider
additional solutions,” he added.
Earlier Tuesday, Greece’s top lender Piraeus Bank said it has agreed to
sell 1.45 billion euros ($1.7 billion) in non-performing business loans to
US-based Bain Capital Credit.
“This is the first commercial real-estate backed NPE sale taking place in
our country,” Piraeus Bank chief executive officer Christos Megalou said in a
statement.
On behalf of the Boston-based investment firm, its European business head
Alon Avner said the Greek market has around 100 billion euros worth of non-
performing loans.
“We are delighted to continue to strengthen our position,” Avner said.
BSS/AFP/HR/0945