After the European Creditors united declared their support to Greece, the Athens Stock Market avoided yet another day of precipitation and even the increase pace of Greek spreads reduced a bit.
However, that doesn’t mean that we can talk about for market stabilization nor for “stopping” the increasing pace of the Greek 10 year yield spreads.
The intervention of the creditors in order to avoid a possible ” market crash” began after last night’s over the phone conversation between Mr. Antonis Samaras and Mr. Jean-Claude Juncker, were the new President of the European Commission gave informal “guidance” for supporting Greece.

After Mario Draghis move to fill the gap created by rising spreads, simply halving the haircut already used by Greek banks to obtain liquidity(which allegedly will provide an extra 12 billion euro to banks, although has not yet been confirmed), then a few hours later in Brussels Saimon O’Connor, Jyrki Katainen and Claus Regling intervened to express their support to Greece.
According to O’ Connor “EU will continue to ensure that Greece will be able to raise funds at sustainable rates”.
“There should be no doubt that EU will continue helping Greece, in whatever way is necessary, in order to ensure reasonable financing conditions for the Greek state, “said Jyrki Katainen.
While, according to Claus Regling:” the good lending conditions provided by us, Greece’s debt is sustainable and will continue to apply for as long as Greece continues its reforms”. He further, estimated that Greece will “possibly need of a preventive nature funding program, as a viable and backup solution in case of emergency”. Finally, Mr. Regling added that: “We must support Greece’s reform efforts.”
To conclude, it is worth mentioning however, that the Head of ESM meaningfully highlighted that thanks to EU lending to Greece, back in 2013 Greece paid only 5 billion euro for interest on loans, while in 2008 had paid 13 billion euro. By saying all that, the Head of ESM, obviously wanted to point out indirectly the benefits for Athens staying in the Memorandum ..