Desperate Tsipras risks fresh financial meltdown in Greece to escape bailout reforms

Alexis Tsipras’ government plans to return to the financial markets for the first time since 2014 with a plan to issue new five-year sovereign bonds to investors.

Greece’s finance ministry has set a goal of a 4.2% interest rate on the new bond. But banking sources say an interest rate of between 4.3% to 4.5% is much more likely.

Greece’s best credit rating is B minus, the worst in Europe.

The move is risky for a desperate Tsipras since he will have to either make drastic cuts in the budget to pay for the interest on the bonds, raise taxes or go back into a new bailout programme after the current one expires next year.

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