international

Taking a brief look back at the time of the Greek crisis, Bloomberg columnist Matthew Winkler refers to the ominous predictions of that period (including Grexit), when "almost everyone said that the newly elected government of Alexis Tsipras would go bankrupt".

In the article titled "Averting Grexit, guess whose debt is outperforming", it is stated that "Greece's economic recovery is validated in its low cost of borrowing, which is below the average of investment grade borrowers anywhere in the world".

"Grexit never happened, because the bond market said so," reflecting public opposition to a possible return to the drachma, according to him and investors "having made Greek bonds their favorite government debt." .

In fact, the Bloomberg columnist speaks of a "sign" that Greece is the financial counterweight to the collapses of Silicon Valley Bank and Signature Bank and the crisis of Credit Suisse and First Republic.

"The country of 10.3 million inhabitants, contrary to any credit assessment, constitutes an investment-grade economy as of December 2021, based on favorable trends in its inflation rate, GDP per capita, GDP growth, non-performing loans and political stability" is pointed out.

At the same time, as noted, "in the bond market, Greece trades at least three notches above the levels that investors consider high-risk, high-yield debt and is expected to regain the investment-grade rating that was last awarded to it in 2008 by the Moody's Investors Service, S&P Global Ratings and Fitch Ratings'.

Also, according to the article, since the election of Kyriakos Mitsotakis in 2019, the country's GDP per capita has expanded by 7%, performing better than major economies, including Germany (1%), France ( 15), Italy (2%), Spain (-2%), Britain (1%) and the USA (4%), based on data compiled by Bloomberg.

At the same time, non-performing loans, as a percentage of the total loans of Greek banks, have fallen to 6.8% from 47% in 2017, i.e. to the lowest levels since 2011.

Meanwhile, according to a Bloomberg index that measures a country's ability and/or commitment to service its debt and/or cause turmoil in the foreign exchange market and was compiled in 2009 (Bloomberg Country Risk Political Score for Greece), Greece with its political risk score of 49 points, has improved by 25% three years after the current government took office, surpassing Germany (82. -2), France (86.0), Spain (67, -1%), Britain (91, -1%), the US (87, -2%) and Italy (44, -8%), according to data compiled by Bloomberg.

"Greece's economic recovery is validated by its low cost of borrowing, which has fallen to 3.9% from 15% in 2015 and 63% in 2012," the publication also points out, adding: "The combination of the reduction of yields and a strengthening economy made Greek bonds the world's best performers with a five-year total return of 18%, when similar benchmark bonds for the European Union, Germany and France lost 11% and while British bonds depreciated 13% and international government bonds lost 11%. Anyone who bought Greek debt in 2013 has an unapproachable return (214%) for a developed economy. The shares of the 60 Greek companies traded on the Athens Stock Exchange are proving to be global winners this year, with a return of 12%."

Referring to the Bloomberg report, Prime Minister Kyriakos Mitsotakis wrote on Twitter: "Greece's GDP expansion 'outpaces major economies' since 2019 and rate of NPL decline "is unsurpassed by the banking industry anywhere, according to data compiled by Bloomberg.''Good news and more good news to come soon.''