Friday 29 March 2024
 
»
 
»
Story

Greece set to offer $2bn treasury bills

Athens, January 8, 2011

Greece said it would issue next week a batch of six-month treasury bills worth 1.5 billion euros ($1.97billion), its largest offering in months amid a planned bond comeback this year.

'On January 11, the Hellenic Republic will auction 26-week T-Bills in book entry form with a maturity of July 15, 2011,' the Greek debt management agency said.

The issue is Greece's largest since July and comes as the debt-hit country seeks a return to international markets this year after a scare over its finances dried up its loan access and drove it to the brink of bankruptcy last year.

The Greek debt crisis also placed major pressure on the euro and forced the European Union and the International Monetary Fund to craft an emergency loan rescue for Athens, followed by another loan to Ireland in late last year.

In the last sale of six-month paper in October, the Greek debt agency raised $511 million, at a yield of 4.82 per cent.

The issue, which had an original target of $387.5m, was oversubscribed more than five times over.

The yield gap, or spread, on Greek bonds compared with German obligations that are considered Europe's safest, has remained high, indicating that Athens still faces unbearably high rates on longer-term obligations.

Greece is struggling under a debt mountain of some $387.5bn and its economy is caught in a deepening recession, exacerbated by draconian cuts.




Tags: Greece | Treasury Bills |

More INTERNATIONAL BUSINESS Stories

calendarCalendar of Events

Ads