Business | Daily | Tourist

The big win by the radical Leftist SYRIZA party in Greece has sent government bonds tumbling amid fears Prime Minister Alexis Tsipras could walk away from some of the country’s debt.

Tsipras was elected on the promise to renegotiate the harsh austerity terms that came with 240 billion euros ($306 billion) in two bailouts from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) or renege on as much as half of it, rattling investors.

He has moderated his tone to say he won’t act unilaterally and will negotiate with the Troika first but there are still jitters in the markets about what the one-time Communist youth leader will do.

Spanish and Italian bonds erased earlier declines as the ECB’s newly announced bond-buying plan may shield those nations’ securities from a sell-off, analysts told the Bloomberg news agency.

“The uncertainty surrounding Greece’s future in the euro is unlikely to go away in a hurry,” said Lena Komileva, London- based chief economist at G Plus Economics Ltd., whose clients include central banks, said before the final election results on Jan. 25. “It will be a bumpy ride for euro-zone high-yield bonds. ECB funds may insulate other euro governments from liquidity shocks.”

Greek three-year yields rose 76 basis points, or 0.76 percentage point, to 10.84 percent early on Jan. 26 with the rate falling more than one percent in the previous three days as the ECB outlined a program of sovereign-debt purchases, while saying Greece wouldn’t immediately be included in the plan.

The post Greek Bonds Fall On SYRIZA Win appeared first on The National Herald.

Source: The National Herald
Share it now!
Who We Are

GQS acts as an “information representative” providing a variety of accurate and authoritative analytics and responses About Greece. Our field of expertise ranges from simple Daily Life questions related to Tourism or the History of Greece, up to large Business related projects such as Economic Research, Human Resources Selection or Real Estate Services.

Find out more

Contact Us

Are you interested in obtaining any kind of information about Greece?

Let us help you!

If your requirements go beyond simple services and you want specialized information, you will receive a detailed email for any charges.

  • Weather

    October 19, 2017, 8:34 am
    Partly sunny
    Partly sunny
    real feel: 14°C
    current pressure: 1020 mb
    humidity: 62%
    wind speed: 0 m/s N
    wind gusts: 0 m/s
    UV-Index: 0
    sunrise: 7:37 am
    sunset: 6:42 pm
  • Currency