Greece eyes 2014 return to bond markets

Finance Minister Yannis Stournaras says Greece hopes to return to bond markets in the second half of 2014.

Bailed-out Greece is hoping to return to bond markets in the second half of 2014 - but only if growth and a primary budget surplus permits.

"We are preparing a return to the markets in the second half of 2014," Finance Minister Yannis Stournaras said in an interview published in the Realnews weekly on Sunday.

But he stressed that was conditional on economic growth and a budget surplus not counting debt servicing costs.

Ailing ever since it almost crashed out of the eurozone in 2010, Greece has been shut out of mid- and long-term bond markets and has relied on bailout funds from the EU and the International Monetary Fund. It has only been able to issue short-term public debt notes.

Government forecasts predict a primary budget surplus of 3 billion euros ($A4.51 billion) next year, after a surplus of 812 million euros this year. It also figures on a return to growth, of 0.6 per cent, after six years of recession.

The Organisation for Economic Cooperation and Development, however, calculates the Greek economy is set for yet another contraction, of 0.4 per cent.

Greece's troika of creditors, the EU, IMF and the European Central Bank, have recently demanded Athens plan further budget cuts over the next three years to fill a gap in public finances.

Stournaras said the gap "is not so big" and the government would continue its efforts in reducing spending and increasing its tax base.


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Source: AAP


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