Greece’s Journey to Redemption Remains a Long One After Aid Deal Uncertain

Greece may have passed a milestone and its bond market has been lucrative for some investors, but the road to recovery doesn’t look much shorter.

The yield on Greek 10-year bonds fell below 7 percent — the threshold where countries were forced to seek aid during the European debt crisis — for the first time since November after creditors agreed to release 10.3 billion euros ($11.5 billion) and pledged to reduce the debt burden down the line. Greece has delivered the highest returns of all euro region sovereign debt tracked by Bloomberg’s World Bond Indexes this year.

The question is whether the nation and its economy can endure yet another squeeze. While the latest deal avoids another summer standoff over finances, austerity measures equal to 3 percent of gross domestic product will kick in from June, further dampening economic activity in a country where almost a quarter of the workforce is without a job.


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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.