Reuters: Govt sources say re-inclusion of Greek bonds in QE crucial for lowering borrow costs in potential return to market

Wednesday, 07 June 2017 18:57
UPD:19:15
Eurokinissi/ΜΠΟΛΑΡΗ ΤΑΤΙΑΝΑ

Reuters, in line with most Greek “bailout watchers”, said the upcoming June 15 Eurogroup meeting will be decisive for finally concluding the second review of the Greek program and even specifying whatever medium-term debt relief.

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A competing flurry of leaks and statements by nameless sources in Berlin and Athens, respectively, continued on Wednesday, with Reuters quoting Greek government sources as saying the country could return to markets for its borrowing needs if costs fall under 5 percent.

The same sources also pointed to the scenario whereby this could be achieved: re-inclusion of Greek state bonds in the European Central Bank’s quantitative easing program.

Reuters, in line with most Greek “bailout watchers”, said the upcoming June 15 Eurogroup meeting will be decisive for finally concluding the second review of the Greek program and even specifying whatever medium-term debt relief.

Both conditions have repeatedly been cited by the ECB as necessary before the central bank even considers the QE prospect – more than two years after Greek bonds were excluded from the bond scheme.

Reuters quoted an unnamed government source as saying any return to the markets with a five-year bond, for instance, would have to come with a yield below 5 percent. 

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