The bond market is the ray of hope for Greece to generate some funds until the end of this year so that they can prepare to exit their bailout program next year during summer. Officials from the European Commission, European Central Bank, and a eurozone rescue fund said that the government has been very strict about following the current reforms and has decided to reduce the pensions which will help the country to generate sufficient public funds required for proper functioning of the country. Due to the first bailout that happened in 2010, Germany wasn’t allowed in the bond market and this is the golden chance for them to get the access to the market this time and is projecting to end the program as per the schedule in the month of August.
The primary reason for the lockout was the unexpected high-interest rates demanded the money invested which was the only solution for Greece to save them from becoming bankrupt and would have to be forced to exit the euro currency. But things changed and with the current financial conditions and stability, investors have a positive vision towards investing their money in Greece. This is one of the greatest opportunities with Greece to avoid the bailout by entering in the bond market and paying back their debts. Now it all depends on the conditions in the market and if the market is favorable for Greece because after all the strict reforms and cut downs in the pension rates, they would be able to make the arrangement for the repayments to the creditors and investors can think of restarting to provide loan facilities to Athens.
There have been many changes happening in the financial system if Greece to avoid the bailout and raise funds for repayment purpose. Greece has developed an independent tax authority to collect taxes and monitor the funds coming in. Greece promoted privatization through which the country would be able to generate revenues in form of taxes and thereby invest in reducing the nonperforming loans to a great extent. There has been an adverse effect of all the strict reforms and cut downs in the country in the form of an increase in the recession, poverty, and unemployment in the country. The country has always relied on the bailout to meet the requirements within the country, but now they are expecting to be independent and have proper financial systems in the country through which they can avoid their next bailout to happen.