Warning issued to EU: Greece’s return to markets is a ‘harbinger of next terrible phase’
GREECE’S return to the financial markets is merely “a harbinger of the next terrible phase” of the national crisis, former Greek finance minister Yanis Varoufakis has warned.
By ROSS LOGAN
Express.co.uk
Wed, Jul 26, 2017
Some analysts have welcomed the Mediterranean country’s decision to offer five year bonds for the first time in three years as proof Greece is finally beginning to crawl its way out of the financial mire.
So far the deal has raised £2.68billion (€3billion) with a yield a little over 4.6 per cent, which has been cited as evidence of investors’ increasing confidence in the Greek economy.
Greek Finance Minister Euclid Tsakalotos hailed the successful sale, saying it was “a beginning” and a sign of confidence in the country’s economy.
But Mr Varoufakis, a former finance minister who quit in 2015 after the Greek bailout referendum, poured cold water on the celebrations.
He said: “Why do I refuse to be impressed by the news of Greece’s return to the markets? It is because the Greek state and the Greek banks remain deeply insolvent.
“And, their return to the money markets is a harbinger of the next terrible phase of Greece’s crisis, rather than a cause for celebration.”
Greece’s re-entry into the markets comes nearly a year before its bailout programme from the IMF and eurozone creditors is due to expire in August 2018.
Questions remain over whether Athens is ready to start making deals while still in debt, but economic chiefs claim early signs appear to be encouraging.
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