By Marta Vilar – MADRID (Econostream) – Following is the full transcript of the interview conducted by Econostream on 18 February 2026 with Dimitris Tsakonas, Director General of the Greek Public Debt Management Agency:

Q: A few days ago, you reopened a 10-year bond. How do you assess the demand for this reopening?

A: We issued this new 10-year bond in January and, as you say, reopened it a few days ago. The January transaction saw record-high demand of €50 billion. We had never seen such high investor appetite, not even in the pre-crisis era. We raised just €4 billion because these were our needs. The new issue premium (NIP) of this issuance was 2-3 bp, which was a record low and fully comparable with the pre-crisis era. So, demand was extremely high.

As for the reopening, where we raised €300 million, demand was again very strong, approximately 2-2.5 times the auction amount. The bonds were overbid by about 5 bp compared to secondary market levels. However, this was relatively modest compared to the higher levels of overbidding observed in previous years. The difference reflects the implementation of new guidelines, which limit yields to a range of +/- 5 bp relative to the average secondary market price during the 10 minutes preceding the auction. These changes have benefited primary dealers.

Q: There will be two other reopenings in H1 2026. The next one will be in April. Have you decided already which bond you will reopen? What does it depend on?

A: First, I’d like to say that we assume that the size of these future reopenings is going to be relatively small, around €200-400 million. In order to proceed with an auction like this, we exchange views with our primary dealers. In the case of the last reopening, most banks out of the18 requested a reopening of the 10-year bond. That’s why we reopened that one. The amount we raised in such reopening, €300 million, is based on their feedback. They wanted something around €200-300 million on average, and we decided to proceed with €300 million. For the April and June reopening, size will depend on investor appetite and the feedback we get from primary dealers.

Q: At what point do you reach out to them to make the decision?

A: We contact them on the Friday before the auction, which is always on Wednesdays. For the mid-April auction, we will reach out the preceding Friday and ask primary dealers four questions. First, we send them a list of the bonds we are considering for reopening. If they agree with any of them, we ask which securities—up to three—they would recommend reopening. We then ask for their suggested minimum and maximum auction amounts for each security. Finally, we ask for the rationale, such as strong investor demand, short positions needing coverage, distortions at that maturity point in the secondary market, or other factors. Once we receive their feedback by close of business on Tuesday—the day before the auction—we follow the majority view and publish the announcement for the next day’s auction.

Q: What determines whether you reopen a bond or issue a new bond?

A: This depends on two main factors: investor appetite and the maturity profile under prevailing market conditions. If the yield curve is particularly steep, it may make sense to issue at shorter maturities. If investors favor longer tenors, we are inclined to follow that demand. We remain in close contact with our primary dealers and hold discussions with each of them almost every week.

Q: Do you expect to issue any more new bonds?

A: It ultimately depends on investor demand. If there is a need to increase the outstanding amount of an existing bond, we will proceed with a reopening. If investors identify a gap along the GGB maturity curve, we will also take that into account. We will most likely carry out another syndicated transaction, although it is still unclear whether this will involve launching a new bond or reopening an existing one.

Q: Are you fully flexible regarding the timing of such a deal, or would you prefer to carry out the syndication in the second half of the year, given that one has already been completed in the first half?

A: It will depend on the investors' appetite. We have plenty of time.

Q: Which part of the curve is attracting the strongest investor demand now?

A: In the GGB curve there is strong demand in the 10-year sector. However, you cannot issue €8 billion just in the 10-year sector, you need to diversify your funding in order to provide supply to other maturity points. The strongest demand is mainly concentrated in the 10-year sector, but I know some investors prefer something shorter, like the 5-year sector, and others something longer, like the 15-year or 20-year sector. But it is too early to decide.

Q: Are you seeing any market opportunities currently?

A: Based on feedback from primary dealers, we understand that the Dutch pension system reform is no longer as prominent a topic as it was a few months ago. As a result, there appears to be strong demand for longer maturities—15-, 20-, and even 30-year bonds. This is understandable: if investors expect long-end yields to decline in the coming years, they are keen to lock in today’s relatively high coupons. At the same time, some investors may still be considering the potential impact of the pension reform and the possibility of a curve steepening, which could encourage a wait-and-see approach. Meanwhile, many sovereign issuers have concentrated supply in the 15- and 20-year segments. In this environment—caught between these two views—demand may naturally gravitate toward those intermediate long maturities. Notably, the average duration of recent Eurozone sovereign issuance has been shorter than last year, perhaps reflecting this period of uncertainty about how conditions will evolve in the months ahead.

Q: Is there any chance you can issue in other currencies any time soon?

A: Never say never. However, under the current circumstances, there is no compelling reason for the Hellenic Republic to issue in foreign currency. Given our limited funding capacity, we do not have room for experimentation. For now, if we were to raise €200-300 million, we would prefer to use it to enhance liquidity in the secondary market by increasing supply.

Q: Things would have to change a lot for you to issue in foreign currency. But if you were, would the most recent developments with respect to the US dollar alter your preferred option in any way?

A: It ultimately depends on whether an arbitrage opportunity exists. The post-swap funding cost would need to be more attractive for Greece than our current funding levels in the secondary market. In practice, we are referring to the US dollar, the British pound, and the Japanese yen markets, with the US dollar being by far the most liquid.

Q: Early repayments account for nearly €9 billion of financing needs in 2026, almost matching scheduled amortization. Should markets interpret this as a structural shift towards accelerated deleveraging?

A: Yes. That’s why we have increased the amount of early repayments this year. We want to reduce our debt level, not just our debt-to-GDP ratio. We also want to find space for funding activity in order to improve our secondary market performance. The most efficient way to use our cash reserves is buying back debt.

Q: The recent bond spread moves have been very favorable to you. In your 2026 strategy, you say that the yield curve remained below that of Italy and France and that the bond spread with the German Bund has fallen to an 18-year low. Do you see any chances of this spread declining further?

A: Yes, I believe there is upside potential for prices and, correspondingly, room for spreads to tighten. There are two main reasons for this. The first relates to fundamentals. Greece has achieved fiscal consolidation, maintains political stability, and has delivered key structural reforms. Geopolitical developments also appear supportive, particularly in relation to the northern LNG corridor. Agreements have been signed between the Greek authorities and companies such as Chevron and ExxonMobil for natural gas exploration and potential oil and gas activity in the Ionian Sea and south of Crete. I am not suggesting that Greece will suddenly become another Saudi Arabia, but there is clearly upside potential.The second reason is technical: scarcity value. We do not have significant funding needs. Our debt maturity profile is very extended, most risks in the debt portfolio have been effectively immunized, and our annual funding activity remains limited. For these reasons, I expect spreads to tighten—whether in the coming months or over a slightly longer horizon.

Q: Would you increase your gross issuance if demand continued to strengthen?

A: Most probably not. Our objective is to reduce public debt while simultaneously supporting liquidity in the secondary market. To achieve this, we are accelerating the early repayment of official sector debt.

Q: As of March 2025, Greece has achieved a full investment-grade status from all major rating agencies. Did this have any impact?

A: There is significant upside potential for Greek debt rating. There is a lot to come regarding potential upgrades. If I were a rating agency, I would compare Greece with its Eurozone peers in terms of fiscal performance, GDP growth, and progress on structural reforms—particularly tax compliance. Before the crisis, Greece’s VAT gap was around 36–38%. Today, it has fallen to below 10%, close to the European average. In fiscal terms, the reduction in tax evasion—together with other tax reforms—amounts to roughly €10 billion per year in consolidation. This reflects structural improvements in the real economy, not just pension or wage bill reforms. For these reasons, I believe further rating upgrades are possible in the coming years. I cannot say when, but I am confident that Greece deserves a full return to normality—what I would define as an A+ rating.

Q: Do you still feel that markets are pricing in a “Greece premium”?

A: On the contrary, based on the performance of Greek government bonds in the secondary market—particularly their spreads relative to other Eurozone sovereigns—it appears that investors believe Greece merits at least one rating notch above its current level.

Q: Regarding the economic outlook, there are some questions about economic growth after 2026, when funding from the EU's Recovery and Resilience Facility is set to wind down. Many analysts are pointing to this period as a potential turning point for GDP performance. Do you agree?

A: The RRF and NGEU funds, including NGEU loans, amount to roughly €75 billion, to be absorbed over seven years—about €10–11 billion annually. For the 2028–2035 period, I am confident that a comparable level of funding will be available to Greece. In the meantime, the Medium-Term Fiscal Strategy includes a gradual increase in public investment to offset the eventual decline in EU funds, and this is already reflected in the five-year budget framework.

The improvement in fundamentals is clear. Unemployment has fallen from 27–28% at the peak of the crisis to around 7.5% today, marking a shift from “brain drain” to signs of “brain gain.” Greece consistently delivers primary surpluses and has implemented deep structural reforms.

Overall fiscal consolidation amounts to about €30 billion annually: €10 billion from wage bill reductions, €10 billion from pension reform, and €10 billion from tax and other structural reforms, including narrowing the VAT gap. A fiscal deficit of nearly 15% of GDP has turned into a surplus, and the trade deficit has narrowed substantially. This is a clear and lasting progress.