Greek Bond Yields Drop After EU Could Extend Loans

Greek bond yields fell sharply on Wednesday after a media report said European Union officials were weighing extending the maturity of loans to Athens to 50 years, which could ease the debt burden on Greece.

Citing two officials with knowledge of the discussions, Bloomberg said the next bailout for Greece may include extending the maturity to 50 from 30 years, and cutting the interest rate on some previous aid.

An official close to Greece’s debt negotiations with the troika had told Reuters as early as October that Greece may swap a big chunk of its bailout loans with a 50-year government bond as a way to achieve debt relief once it attains a primary budget surplus this year.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza