Roughly five billion euros was invested in state shares and bonds between 4Q 2022 and 3Q 2023 as a result of recent Greek economy credit rating upgrades, the Bank of Greece’s (BoG) economic bulletin revealed on Wednesday.

The report, entitled “The investment grade and funds’ portfolio allocation in Greek assets” (Issue 59, July 2024)”, reports that 2.9 billion euros are placements in shares, and 2.1 billion euros in bond placements.

An analysis in the report points to an upgrade in Greece’s sovereign credit rating outlook – to positive – by Standard and Poor’s (S&P), piqued interest by investment funds to increase their share of Greek sovereign bonds, and in relation to other comparable euro-area sovereign bonds.

Additionally, the report assesses the hike in international investment funds’ positions in Greek government bonds (GGBs) generated roughly an 80%-reduction in the Greek state’s bond spreads.