Huge interest in bond issue

The Greek state is expanding its cash reserves by 3 billion euros - to be used for battling the new crisis stemming from the coronavirus pandemic and to support the Finance Ministry's fiscal measures - after Tuesday's 10-year bond issue; in terms of the amount drawn, this was the biggest since 2017, when Greece had also raised €3 billion, through a five-year bond issue.

The final interest rate came to 1.57%, against an original guidance for about 1.70%, approaching that of the 10-year reissue last October (1.5%) and far below the average cost of servicing the national debt (1.91%). Demand in this second market foray for Greece during the coronavirus crisis was very strong by Greek standards, with total bids topping €15.75 billion.

In a week full of new debt issues by eurozone member-states, international investors displayed high interest in the new Greek bond, with...