Greek bond prices up, on speculation of credit rating upgrade
Speculation over an imminent upgrading of the country's credit rating by Moody's is driving up Greek state bond prices in the domestic electronic secondary bond market on Friday, while 10-year bond yields are down to 9.09 pct from 9.71 pct on Thursday.
Analysts expect that Moody's could raise the country's credit rating by five notches to B-, a category; however, that will be three notches below Portugal's credit rating.
An upgrading of the country's rating is necessary precondition to allow the country to return to capital markets in 2014 and to cover a funding gap with new borrowing. The IMF estimates this funding gap to around 11 billion euros in the two-year period from 2014 to 2015.
European Commission says progress in troika's negotiations with Greek gov't satisfactory
The troika (EC, ECB, and IMF) called satisfactory the progress of their negotiations with the Greek government, in an announcement issued on Sunday by the European Committee office in Athens. According to the announcement the talks will stop temporarily and is expected to resume within the next weeks after the completion of the technical issues.
Moreover, it was noted that "the delegation that reviews the Greek government's economic programme comprised by European Commission, European Central Bank and International Monetary Fund's officials made a substantial progress. The negotiations in Athens will be temporarily interrupted and is expected to restart within the next week after the completion of the technical issues. Meanwhile, the contacts between the officials and the Greek authorities will continue.