Privatisation snag could push back "Grecovery" 11 Jun 2013 Athens will have to lower its privatisation revenue targets for 2013 after a tender for state-controlled natural gas company DEPA attracted no bids. Coming after some good news, this setback will hit confidence as well as revenue. The Greek recovery could be delayed yet again.
Draghi could use euro calm for IMF-style mea culpa 6 Jun 2013 The central bank chief wisely avoided rate cuts or extraordinary measures. But he dodged the biggest storm in Europe right now, the IMF’s criticism of the Greek bailout. The ECB has a lot to be proud of, but reflection could teach useful lessons. It’s a good time to take stock.
Austerity gets a beating with IMF’s mea culpa 5 Jun 2013 The fund is admitting it miscalculated the effects of aggressive fiscal belt-tightening on the Greek economy. As a result, the IMF will be more reluctant to impose pain on citizens of crisis-afflicted nations. That probably means more sacrifice in the future for creditors.
Greece’s vicious circle may be turning virtuous 15 May 2013 Yields on Greek 10-year bonds hit their lowest level in nearly three years. Investors are returning now that fears of a euro zone exit have receded and the country’s finances and politics look more stable. The economy is still in trouble, but it’s moving in the right direction.
Greek bank recap: Germany please look away 14 May 2013 Warrants awarded to investors, like hedge funds, that help rescue Greek banks could bring 800 percent-plus returns. That reflects massive risk. The troika is so desperate for Greece to recover that it is forgoing the potentially epic upside on its own rescue package.
Greece offers value in distorted low-rate world 13 May 2013 German Finance Minister Wolfgang Schaeuble worries that loose monetary policy is distorting markets. That doesn’t show for Greece, whose bonds still pay a hefty yield even after risks of a euro exit have receded. Athens remains an outlier in the peripheral dash for trash.
Hugo Dixon: Greece will probably pull through 22 Apr 2013 Although the economy will have a terrible 2013, next year should be better. But the outlook is fragile: political crisis could yet rear its ugly head, tax evasion is rife and there’s the risk of external shocks, from Cyprus or further afield.
Greek banks look bail-in proof – for now 9 Apr 2013 The stalled merger of NBG and Eurobank will leave bailed-in Cypriot depositors wondering why Greek lenders are left whole. Athens’ pre-agreed bailout terms and a fear of peripheral bank runs are the reasons. That could change if Greek banks need more money.
Greece finally does something helpful for Cyprus 22 Mar 2013 Piraeus has snapped up the Greek branches of Cypriot banks. Athens’ default last year is one of the reasons why Nicosia’s banks are in trouble. Greece has proved more accommodating with the island’s departing banks than it was last year with French lenders.
Euro zone enjoys rays of economic light 19 Feb 2013 There is still dark news around, for example falling GDP at the end of 2012. But that is the past. A survey shows growth returning to Germany, the currency area’s strongest economy, while a narrowing current account deficit is a sign of adjustment in Greece, one of the weakest.
Greece’s fiscal rectitude isn’t all good news 13 Feb 2013 Athens is meeting and beating fiscal targets for the first time since 2010. This is mainly due to deep spending cuts. The successful adjustment will be seen as an encouraging sign by foreign lenders. But austerity is threatening the economy and the state’s revenue base.
Telecoms debt issue signals Greek renaissance 31 Jan 2013 Greece’s biggest telecoms company has sold 700 million euros of bonds - the first such move since 2011. The cash will help OTE reduce debt and fund investment in new technology. It may also be a tentative sign that business in the Aegean is regaining some semblance of normality.
Greece flirts with single-digit yields 24 Jan 2013 Greek 10-year government bonds haven’t traded below 10 pct since October 2010, but they’re just above that psychological threshold now. Fears of Grexit have receded and reforms are largely on track. But the big prize - borrowing in the open market - is a long way away.
Gazprom bid for Greek gas puts EU in a bind 15 Jan 2013 Brussels might not like that Gazprom and a little-known Russian power group are lead contenders in a Greek gas privatisation. But with Grexit fears lurking, it’s no wonder the sale hasn’t attracted more buyers. An unusual example of self-defeating policies at work.
Greece has started the long climb up 8 Jan 2013 An EU survey says the Greeks are the least pessimistic they’ve been in the last three years. That suggests Greece may finally be adjusting to life without many subsidies. A boom is not around the corner. But after a 19 percent GDP decline, there should be lots of room for growth.
Greece should lure sea turtles back to the Aegean 19 Dec 2012 China calls returning emigrants sea turtles. Greece needs its own, as ever more young people emigrate to escape high unemployment and austerity. The country loses much needed know-how and energy. The Greek government should find the money needed to lure some turtles back.
Greek banking governance is a gamble 3 Dec 2012 The euro zone and IMF are putting nearly 50 billion euros into the country’s banks. But they don’t want to take control of the lenders themselves or let Greek politicians meddle in the industry. So they’ve concocted a scheme which may leave too much power with existing owners.
Are Dublin and Lisbon ready for Greek bondage? 29 Nov 2012 Ireland and Portugal wouldn’t mind benefiting from the type of debt relief that Greece just received. But if Athens got sweet terms, it surrendered part of its fiscal sovereignty in return. Other countries are only half-serious when they call for equal treatment.
Euro zone gives Greece almost a good deal 27 Nov 2012 The stand-off between Greece’s lenders has ended - sort of. The IMF has extracted debt relief from the euro zone, and Germany has avoided a haircut for now. Private creditors will have to agree to take more losses. But at least the deal paves the way for further debt relief.
Hugo Dixon: Battle against Grexit far from won 26 Nov 2012 Assume Greece gets its next 44 bln euro tranche of cash and some debt relief. Even then, the banks will still be hobbled, while another round of austerity is in the works and vested interests are rife. It will be hard to restore growth - and without that the government will fall.