Greece to struggle on eurozone's loan terms says Paul Brain

The eurozone's support for Greece will tide it through the next round of debt refinancing, but Athens will struggle to pay the 5% rate, says Newton's Paul Brain.

He says the package, which includes at least €30bn from eurozone members and up to €15bn of IMF cash, will cover the country's refinancing needs this month and in May. The £683m Newton International Bond fund and £283m Global Dynamic Bond fund Brain runs have about 1% of assets in Greek debt. He began buying it last quarter, including 10-year debt at yields exceeding 7.3%. Brain says he could buy more at or above 6.5%, "but once you get to 6% or below, that is the time to take profits". Even though Brain says the package has relieved pressure from Portugal, Spain and Italy, he h...