ATHENS, Greece (AP) — Greece has raised 3.5 billion euros ($4.2 billion) at a record-low interest rate through a 10-year bond issue, the first of 2021.
Finance Minister Christos Staikouras said the yield at Wednesday’s auction was 0.8%, while demand for the bond was “very high.”
With a bond issue expected each quarter, Greece is planning to raise between 8 and 12 billion euros ($9.6-12.1 billion) from money markets this year.
Global financial turmoil caused by the pandemic has pushed Greece back into a major recession just two years after the country completed its third successive international bailout program.
Also, the national debt is expected to surge to 208% of gross domestic product in 2020 after hovering around 180% for the previous seven years. Most of Greece’s debt is held not by private investors but by European Union institutions which have set more generous repayment terms than markets.
Barclays, Citigroup, Deutsche Bank, Morgan Stanley, Nomura, and Greece’s Eurobank managed Wednesday’s auction.