Athens shelves summer bond issue plan

The recent political unrest in Italy is forcing Greece to freeze its summer bond-issuing plans, with Finance Ministry sources scrambling to calm investor fears that a full return to the markets in the fall might generate.

The improvement in the performance of Greek bonds in April led the Greek government to start planning its next issue, but last month's deterioration convinced the Public Debt Management Agency (PDMA) to take a wait-and-see stance.

Since last month analysts and investment funds have told Kathimerini that a fresh attempt to tap the markets at this point, when volatility and market pressures have risen, would be the wrong move, pointing to the stumbling effort of the seven-year bond issue last February. Economists have told Kathimerini that Athens's "clean exit" plans are now being reversed and that a precautionary credit line would be the best option.