Greece may be heading for bond market test 'in days'

Greece is expected to return to the bond markets in 2018, but having secured its third bailout program Athens may test the waters by issuing a new bond as early as July 17.     

Greek newspapers have been speculating that a bond market test could come in "a matter of days."

"Monday is probably the day even though nothing can be taken for granted," Avgi,  the ruling Syriza party newspaper said on July 15.  
   
The conservative Kathimerini newspaper reported that Athens appears willing to "take advantage of the current positive conjecture in the markets."   

It said that markets are in a mood for taking risks right now and there are high levels of liquidity.     

It seems to be a toss-up whether Athens will take the plunge or not.

"It is being discussed... Preparations are made for both scenarios and whatever happens we will be ready," a source with knowledge of the government's plans told AFP on July 14.  
  
Greece has no immediate need to draw money from the bond markets. The European Stability Mechanism (ESM) will keep feeding the debt-ridden country with low rate loans until the end of the bailout program in July 2018.     

This funding gives Athens the chance to test without major risks its credibility in the capital markets after a tumultuous period of Grexit scares, hard decisions and painful reforms.       

And last week eurozone finance ministers approved the latest 8.5 billion-euro disbursement, just in time for Athens to meet major debt repayments and avert a default.

The Greek economy nearly collapsed in 2010 under a mountain of debt and it had to be bailed out by its eurozone partners three times to prevent it bringing down the single currency bloc.