On the financial side the crisis is reflected in Israel mainly by the fall in prices of shares and corporate bonds, unlike in the advanced and other economies.
Following the announcement of additional fiscal consolidation measures by the Greek authorities in March and the statement by the Heads of State and Government of the Euro Area later in that month, Greek bond spreads narrowed somewhat. But re-ignited market concerns on the macroeconomic outlook and the government’s refinancing requirements drove spreads substantially higher over the past few days.