From Crisis to Confidence: Foreign Capital Floods Into Greek Markets

07:32 30/6/2025 - Πηγή: iEfimerida

Billions of euros from foreign investors are pouring into Greek government bonds and stocks, a dramatic reversal of fortune fueled by the country’s return to investment-grade status after more than a decade of being shut out of mainstream global finance.

The

surge in demand, detailed in a recent Bank of Greece report, is the clearest sign yet of restored international confidence in an economy once at the center of Europe’s debt crisis. 

Foreign investment in Greek government bonds has jumped by €5.5 billion since early 2023, while investment in the Athens Stock Exchange has increased by €11 billion over the same period.

The change has been transformative. 

For years, Greece’s debt was rated as “junk,” barring many large international pension and investment funds from purchasing its assets. 

Now, with the investment-grade seal of approval, a new class of long-term, quality-focused investors is flocking to the country.

Nowhere is the turnaround more evident than in the government’s borrowing costs. 

The yield spread—the risk premium Greece pays to borrow compared to Germany—has narrowed dramatically. The Greek 10-year bond now trades at a yield of just 3.3%, comparable to Italy's, a striking recovery that has made the country’s debt attractive to global funds.

This renewed confidence has also ignited the Athens Stock Exchange. 

The main index has soared more than 70% since the momentum toward regaining investment grade began in early 2023. 

Average daily trading volume has jumped by 35% in the last year alone, and Greek companies have found it easier to raise new capital, with more than half a billion euros raised in the first five months of 2025.

After more than a decade of austerity and financial turmoil, the flood of foreign capital signals that international markets are betting heavily that Greece's economic recovery is here to stay.

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From Crisis, Confidence,Foreign Capital Floods Into Greek Markets