Berenberg Bank commented on Greek bonds last week, pointing out that narrowing spreads on key eurozone government bonds reflect Greece’s strong growth.

Thanks to the sweeping reforms implemented by the government and Prime Minister Kyriakos Mitsotakis since 2019, Greece has become the fastest-growing economy in the eurozone, the private bank argued.

“Political risks have been largely minimised, the budget deficit is strictly under control (only 1.6% of GDP in 2023) and government debt has fallen from 207% of GDP in 2020 to 162% in 2023,” the report said.

This is supported by the fact that Greece pays low interest rates on most of its debt owed to official creditors, meaning the spread on Greek government bonds is just 93 basis points.