Greece will enter the European Central Bank (ECB) quantitative easing program, but this is no longer so important, revealed the Prime Minister Alexis Tsipras. He commented that many economists and politicians believed that participation in the program was crucial to the emergence of capital markets. However, the last few months have shown that this is not the case.
The country struggled to be included in the central bank’s quantitative easing program, as its agency rating was not investment-grade. However, credit rating agencies will quickly change their minds if Athens succeeds in successfully completing its third rescue program in August 2018.
Meanwhile, the Greek government managed to sell the first issue of government securities after a break of several years.
The agreement at the technical level of the Third Rescue Program Review sent the interest rate on the 10-year government securities to the level of 4.775%, which is the lowest since 2009, or before the first rescue programs for the country. In 2012, the interest rate peak was 33.7%.
Months ago, Greece also commented that entry into the ECB’s quantitative easing program is already a signal to investors, and this will generally affect the country’s economic development. Now, however, they do not insist on a quick accession to the country, and they believe that this could happen after August 2018.
Meanwhile, the ECB reduces the amount of purchased “toxic” assets under the program and it is unclear what level they will reach before Greece joins.