The Greek government is set to make its first market exit with a 10-year bond later this week.

As the Public Debt Management Organization announced a short while ago, the bond auction (reissue) scheduled for January 15, 2025 will not take place, due to the upcoming syndicated 10-year bond issue.

Reminder, the 2025 issuance policy is for:

– To cover the gross financing needs of the Greek government.

– To further expand the investment base of Greek bonds, especially after and because of the acquisition of the investment grade.

– To ensure the continued issuance presence of the Greek Government in the international capital markets in order to maintain a reliable yield curve, so as to be a benchmark for the entire Greek economy, as well as to find the “fair-reasonable value” of all Greek assets.

– To further reduce the margins of both liquidity risk and credit risk, which will result in a further reduction in the cost of borrowing for the Greek government.

– The improvement of liquidity and the volume of transactions in the secondary market of Greek Government Bonds.

– The maintenance of the overall domestic money liquidity, which is decreasing due to the annual public debt servicing costs (interest and interest rates) mainly to foreign investors and lenders, both private and official sector.

– To reduce refinancing risk, while creating space for issuance activity, by replacing short-term debt with medium-term debt.

– The gradual reduction but at the same time maintaining the level of the government’s cash reserves at a satisfactory level.

– To provide additional “security” to the rating agencies for a possible further upgrade of the Greek government’s credit rating.