Treasury bills sale shows confidence in Greece rising
George Papaconstantinou. Photo: Getty Images
Wednesday July 14 2010
FOR the first time since getting bailed out in May, Greece sold Treasury bills at an interest rate below the 5pc charged by the European Union when it rescued the nation from default.
The domestic auction suggests that confidence among banks in Greece, which purchased 80pc of the €1.625bn of 26-week bills yesterday, is growing.
Prime minister George Papandreou's government cut wages, postponed retirements and raised taxes to trim the eurozone's second-highest budget deficit and restore investor willingness to lend
"It's an encouraging sign that Greece can finance its short-term requirement," said Michiel de Bruin, who oversees $32bn (€25.1bn) of European government debt at F&C Asset Management in Amsterdam.
Austerity
"It's a step in the right direction. But it's perhaps too early to say the situation has turned in the eurozone.
"Investors are still focused on how the austerity measures are implemented."
The bills due January 14 were sold at a rate of 4.65pc, the Public Debt Management Agency in Athens said in a statement.
Greece's finance minister, George Papaconstantinou, said he was satisfied with the results of the auction and said the government may resume bond sales next year.
While the rate at the auction was lower than estimated by some strategists, it was still the highest since a sale of similar bills in September 2008.
Irish Independent
