Greece Plans To Raise Debt In 2024

 Greece Plans To Raise Debt In 2024

Greece Plans To Raise $7.5 Billion In 2024 From Bond Markets

According to government sources, Greece is planning to raise around $7.5 billion or 7 billion from the bond markets next year. The country is planning to issue both short as well and long-term bonds in the debt market.

Even retail investors will be allowed to participate in the bond auction as the county plans to get more money in 2024. This is a recent development as the company has gained a credit rating of 'investment grade' after a period of 13 years.

Each auction of the bond will be worth up to 500 million and will allow Greece to use the funds in its yield curve program.

According to Greece's finance minister, they will be able to achieve the funding goal as long as they manage to reduce the number of T-bonds that are in circulation. In 2024, the country will be able to reduce around 1.5 - 2 billion from its outstanding T-bills.

Greece's Raised 8.3 Billion in 2022

In the year 2023 alone, Greece tapped the debt market and got 9 billion. A year before (2022), the country got a debt of 8.3 billion. So, based on the past few years, it appears that the country is on a path of raising capital from the debt markets to sustain the economy.

As per the details, the country is offering a 3.81% yield on its T-bills based on last week's data. That's almost two times higher than the interest rates offered by most Greek banks.

Earlier, another country from the Europe also tapped the debt market to raise funds. That country was Belgium which managed to get 21.9 billion through the auction of T-bonds. However, the finance minister of Greece said that they don't want to issue bonds like the Belgium.

In 2023, Greeace is forecasting a 2.3% GDP growth which is a step down from the 2022's growth of 5.9%. However, it is higher than the average GDP growth of 0.6% in the EU area.

Although the country has been trying to lower its debt, the pace is a lot slower than what should be considered ideal. By the end of 2023, the total debt of Grece will be around 159% of the total GDP.

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