Storno sui mercati ?
Greek Bonds Tumble as Government Says Tax Revenue Falling Short
2010-10-27 10:15:27.967 GMT
By Keith Jenkins
Oct. 27 (Bloomberg) -- Greek bonds slid for a third day as Finance Minister George Papaconstantinou said a tax-revenue shortfall is hampering government efforts to reduce the nation’s budget deficit.
The declines pushed the yield on the 10-year bond to the highest in more than three weeks. Papaconstantinou, speaking at a conference in Limassol, Cyprus, said Greece has "serious tax compliance issues" and that a Greek tax amnesty is "a break with the past." Greek Prime Minister George Papandreou said Oct. 7 his government inherited a deficit that was "close to 15 percent" of gross domestic product last year.
"The tax problems highlight event risk for Greek bonds,"
said Harvinder Sian, a senior bond strategist at Royal Bank of Scotland Plc in London. "The country functions with zero appetite to pay tax, and the authorities are looking to change this. Papaconstantinou is drawing a line in the sand, and wants better compliance from now on."
The yield on the 10-year Greek bond rose 45 basis points to
10.21 percent as of 11:09 a.m. in London. That’s the most since Oct. 1, based on closing levels. The 6.25 percent security maturing in June 2020 fell 2.29, or 22.9 euros per 1,000-euro
($1,384) face amount, to 76.26.
The extra yield investors demand to hold Greek 10-year debt instead of bunds rose by 32 basis points to 748 basis points, the most since Oct. 8.
