Greece has been the epicentre of the eurozone debt crisis. And its ongoing economic depression is highlighted by the fact that a quarter of its workforce still lines up at the unemployment office.
However, there are more and more signs that things are turning around in Greece.
“Greece has been the most conspicuous example of the dramatic improvement in sentiment towards the eurozone periphery,” said Nicholas Spiro, managing director of Spiro Sovereign Strategy. “Markets have gone from being paranoid to complacent in a very short period of time, with the recent sell-off in developing economies playing into the hands of debt managers across the eurozone periphery.”
Spiro’s comments come in the wake of reports that Greece will soon re-enter the bond markets after being shut out for four years. Economic contraction made the country’s crushing debt load increasingly onerous to finance.
“Greece, which has been bailed out twice by the European Union and the International Monetary Fund since 2010, aims to raise up to 2.5 billion euros, expects strong interest from investors and is optimistic it will succeed, one government official told Reuters on condition of anonymity,” reported Reuters Alex Chambers and Lefteris Papadimas.
Below is the roundtrip the Greek 10-year yield, surging to crisis-level interest rates and then collapsing to more normal levels.