ESM Managing Director Klaus Regling on Monday referred to a “good time” at present to facilitate Greece’s future foray into the capital markets, speaking at Monday’s Eurogroup meeting in Brussels.
In fact, Regling noted that the fact that Greece or the Greek issue was not included on the Eurogroup agenda was a positive sign.
He pointed to the successful return to the markets of other Euro zone members that had also endured bailout programs - Ireland, Cyprus and Portugal - but who subsequently successfully matriculated from institutional lender and creditors' supervision.
Furthermore, he predicted that the Greek state will not need exorbitant borrowing when it tests the markets, given that its finances now post annual – and memorandum-mandated - primary budget surpluses.
The issue of when and how Athens will return to capital markets has been the subject of increased scrutiny and speculation over the past month, both in Greece and in Euro zone capitals. The current and third consecutive economic adjustment program (bailout) ends in August 2018, with European creditors citing the prospect of an ESM “cushion” but no chance of a fourth memorandum.
