ATHENS: Greece said yesterday it expected to beat a 2014 budget target set by its international lenders and may tap bond markets again with an issue of between €3bn and €6bn to plug any potential funding gap over the next 12 months.
Athens sees a primary budget surplus of 2.3 percent of GDP this year, exceeding a target of 1.5 percent of GDP set by the European Union and International Monetary Fund, Deputy Finance Minister Christos Staikouras said. The figures Staikouras announced are part of an updated mid-term budget plan, which the government has submitted for approval to parliament. “The mid-term plan for 2015-18 marks the country’s path towards economic recovery and growth and towards maintaining substantial and sustainable primary budget surpluses,” Staikouras said.
Bailed-out Athens has been topping its budget targets and returned to bond markets this month, in a sign of the progress made in fixing its finances after four years of tough austerity measures that wiped out almost a quarter of its GDP and sent unemployment to record highs of nearly 28 percent.
Greece ended a four-year exile from international bond markets with the sale of a five-year bond, and Staikouras said Athens could sell between €3bn and €6bn of bonds over the next 12 months.
Reuters
