(Bloomberg) -- Greece’s new government is wasting no time.

Only nine days after winning national elections, the administration of Prime Minister Kyriakos Mitsotakis is pouncing on low yields for Greek debt to sell a new seven-year bond, expected on Tuesday. The country wants to finalize its annual financing program and signal that better days are coming for the Greek economy.

Greece previously sold seven-year bonds in February 2018, raising 3 billion euros ($3.38 billion) at a yield of 3.5%. This time the finance ministry is looking to secure some 2.5 billion euros at a much lower cost with the 2025 notes currently yielding 1.57%, a little above a record low of 1.29% hit earlier in July.

If investors who haven’t previously looked at the country “are convinced that Greece will keep improving fundamentally going forward, then current yields, although low by historical standards, are still high enough to entice them to start participating in this market,” said Dimitris Dalipis, Head of Fixed Income at Alpha Trust in Athens. “There is a shortage of yield alternatives in euro bond markets,” he said.

The move comes even before the new government starts negotiations with Greece’s creditors for the 2020 budget and the new medium-term fiscal program. Mitsotakis wants to implement ambitious tax reform that will reduce the burden for taxpayers and help boost investments. Measures are expected to be spread over the next three years and cost some 6 billion euros.

Greece’s European partners have already warned that any such action should not jeopardize the country’s already-agreed fiscal path. That deal sees Greece achieving annual primary surpluses equivalent to 3.5% of economic output until 2022 in order both to repay debt obligations and to put public debt on a sustainable course.

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Greece currently enjoys a cash buffer of around 37 billion euros so the country isn’t in need of fresh funds to meet its obligations. The new issue is another sign that country is returning to normality as the sale will mark the completion of the 2019 financing program as it was announced in December. Under that plan, the nation has already issued a five-year note and 10-year bonds raising 5 billion euros.

The new government is also anticipating some good news in the coming weeks that would help it to sell another bond in 2019. Fitch Ratings is due to announce its latest report on Greece in early August and by the end of the same month Moody’s is scheduled to follow. Both rating firms may upgrade Greece’s sovereign status which is still well below investment grade.

Bank of America Merrill Lynch, Deutsche Bank, Morgan Stanley, Nomura and Société Générale are the bookrunners for the seven-year bond.

To contact the reporter on this story: Sotiris Nikas in Athens at snikas@bloomberg.net

To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Paul Tugwell, Jerrold Colten

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