Greek borrowing costs lurch back to crisis levels

15 Οκτ 2014

Greek borrowing costs have risen above the eurozone "crisis-level" for the first time in over six months as fears about the country's abilities to repay its debt resurface.
Ten-year yields hit 7.063pc on Tuesday - the first time they have been above the psychologically-important 7pc barrier since March.
Greek bond yields fell below this level earlier this year for the first time since 2009, an event that was seen as a mark of confidence returning to the eurozone.
Returns fell to around 5.5pc as recently as last month but have crept back up in October as questions about growth return.
Inflation in the single currency region is at perilously low levels and the Eurozone’s core territories - France and Germany - are struggling.
German investor sentiment fell for the 10th straight month to hit a 22-month low in October, according to the influential Zew survey.
The reading fell to -3.6 points from 6.9 points in September, worse than analyst predictions of a flat figure.
The Eurozone’s biggest economy is facing the prospect of falling into recession this year, as sanctions on Russia bite. The economy shrank by 0.2pc in the second quarter of the year.
Other factors hitting investor confidence are the spread of the deadly Ebola virus, and conflict in the Middle East.
However, yields in Germany, France, Italy and Spain fell on Tuesday, making Greece an outlier, suggesting other fears are plaguing investors.
The rise of the radical left Syriza party, led by Alexis Tsipras, is also a potential factor. The party, currently leading in the opinion polls, has advocated defaulting on Greece’s debts and reversing the country’s austerity measures.
Economists at Citi pointed out that a snap election, expected to be called if the current parliament’s presidential candidate is not approved, would be likely to make Syriza the largest party in a new parliament.
(Πηγή: telegraph.co.uk)

Share on:
 
Copyright © Onus News - All Rights Reserved
Developed by Onus News