My latest piece for IFR Reuters on how Greece can hope to finance itself:
Greek fire is one of the most fabled of Greek scientific discoveries. Developed in the seventh century by a certain Callinicus, it was an incendiary weapon that would continue to burn even when on water. Used to great effect against the Muslim fleets, what was called the “flame of heaven” changed the nature of war. But it had one drawback. It occasionally blew up in the soldiers’ faces.
Only two short years ago Greece was, as one DCM head calls it, “the fallen angel and centre point of the European sovereign crisis”. It even gave its name to the portmanteau phenomenon – the Grexit – the putative departure of Greece from the European Union.
Now it has made a move out of a crippling recession. And, at the beginning of April, the Greek government returned to the markets with a 4.75% €3bn five-year bond yielding 4.95%. Many hope that it is as much of a financial game-changer as Greek fire was a military one. As heavily oversubscribed as it was pre-publicised, little wonder that Prime Minister Antonis Samaras told Reuters at the end of March that “Greece is back”.