The Greek Government is moving forward with a 10-year bond reissue, while ECB is preparing to raise interest rates and government debt remains cheaply financed.<\/p>\n
The Hellenic Government<\/strong> is expected to enter the markets later today with the re-issuance of a 10-year bond<\/strong> maturing June 16, 2036, just two days before the European Central Bank’s scheduled interest rate hike<\/strong>.<\/p>\n The Government Debt Management Organization (GEMO)<\/strong> instructed Alpha Bank, Barclays, Citi, Commerzbank, Nomura and Societe Generale<\/strong> to handle the issuance.<\/p>\n The move was already included in the borrowing plan<\/strong> for the first half of 2026, which called for a bond reissue on June 17. The aim of the planned outflows in buying is not so much to raise new liquidity<\/strong>, but to strengthen the yield curve<\/strong> of Greek securities and stimulate the secondary market<\/strong>.<\/p>\n Despite the pressures on eurozone bond markets from the ECB<\/strong>‘s expected decision to raise rates again by 0.25%, the Greek bond market<\/strong> continues to show remarkable resilience.<\/p>\n The yield on the Greek 10-year bond<\/strong> in the secondary market stands at 3.77%<\/strong>, while the spread over the corresponding German security<\/strong> remains at 0.78 percentage points<\/strong>, as the German yield stands at 3.07%<\/strong>.<\/p>\n At the same time, according to Eurostat<\/strong> data, the cost of servicing Greek government debt<\/strong> is among the lowest in the eurozone. The apparent servicing cost fell in 2025 to 2.18%<\/strong> from 2.27%<\/strong> in 2024, a development attributed to the long maturity and the particular structure of the debt.<\/p>\n According to the GDPF<\/strong> data, at end-March 2026 the cost of servicing General Government<\/strong> debt was 1.38%<\/strong> on a cash basis, including swaps, and 1.84%<\/strong> if deferred interest on EFSF<\/strong> loans is included.<\/p>\n At the European level, the highest apparent cost of debt was recorded in Romania<\/strong> at 5.2%<\/strong>, followed by Poland<\/strong> at 4.5%<\/strong>, Czech Republic<\/strong> at 3.1%<\/strong> and Italy<\/strong> at 3.0%<\/strong>. In contrast, the lowest rates were Ireland<\/strong> at 1.4%<\/strong>, Luxembourg<\/strong> at 1.5%<\/strong>, Netherlands<\/strong> at 1.7%<\/strong> and Germany<\/strong> at 1.8%<\/strong>.<\/p>\n Of the 400 billion<\/strong> of public debt of the Central Government<\/strong>, 73%<\/strong> or about 292 billion<\/strong> is in the Central Government<\/strong>. euros<\/strong> is non-negotiable, as it relates to loans granted by EU member states and institutions such as the ESM and the EFSF<\/strong> under the Memoranda of Understanding.<\/p>\n Last week, the ESM<\/strong> and EFSF<\/strong> gave the green light for early repayment<\/strong> of Greek Loan Facility (GLF)<\/strong> loans of 6.94 billion<\/strong>, which had original maturities in the period 2029-2035. Repayment will be made through the cash reserves of the so-called “hard cushion”<\/strong>.<\/p>\n The GLF<\/strong> was part of the first support package for Greece in 2010 and included bilateral loans from 14 eurozone countries totalling 52.9 billion. EUR<\/strong>, of which some \u20ac52.3 billion<\/strong> remains outstanding.<\/p>\n This move represents the second largest early repayment of GLF<\/strong> loans, after a similar action in 2025.<\/p>\n","protected":false},"excerpt":{"rendered":" The Greek government reissues a 10-year bond, while the ECB prepares to raise interest rates and government debt remains cheap.<\/p>\n","protected":false},"author":1,"featured_media":9905,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-9904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/9904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9904"}],"version-history":[{"count":0,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/9904\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/media\/9905"}],"wp:attachment":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Resilience despite interest rate pressures<\/h3>\n
Long-term loan repayments of \u20ac6.94 billion<\/h3>\n