Wednesday, July 26, 2017

Greek bond sale wins rare praise from Germany’s Schäuble

by Kerin Hope

Financial Times

July 26, 2017

Two years ago Wolfgang Schäuble said “it would be better” for Greece to leave the eurozone. But in rare praise this week Germany’s steely finance minister struck a much warmer note.

“Greece has carried out many reforms and is on a good path,” said Mr Schäuble in a media interview — support that shows how far the country has come since the EU’s tense five-month stand-off in 2015 with the leftwing government of Alexis Tsipras.

His comments came in the same week that Greece returned successfully to the sovereign debt market with a €3bn bond offering, which was more than twice subscribed. A buoyant Mr Tsipras hailed the issue as “the most significant step towards ending this unpleasant adventure of the memorandum [bailout].” Euclid Tsakalotos, the finance minister, said Greece would hold another two or three bond sales in the coming months with the aim of building a sufficient cash buffer to keep the government afloat after it exits an €86bn bailout in August next year.


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