Greek banks rush to sell state debt in May after periphery rally

Greek banks offloaded €4.84bn of government bonds in May (Source: AFP/Getty Images)
The Greek banking system sold more government debt in May than in any other month for the past 13 years, according to figures released by the European Central Bank (ECB) yesterday.

Statistics released by the central bank suggested that the country’s financial institutions offloaded €4.84bn (£3.88bn) of government bonds during the month, the most since the summer of 2001.

Despite the incredible rally in Eurozone government debt, which drove bond yields to historical lows in some countries, some analysts are urging caution about the rapid improvement.

“Public debt remains unsustainable in several euro area member states: To render public debt sustainable, the euro area needs growth and this in turn requires structural reform,” said Michala Marcussen of Societe Generale.

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