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Greek money market return next week

Greece - Plans to raise €1.25 billion
Greece - Plans to raise €1.25 billion

Greece will issue six-month treasury bills worth €1.25 billion on July 13, marking the debt-hit country's first move into the money markets since a loan bail-out.

The planned outing is Greece's first after it was narrowly saved from a debt default in May by a €110 billion rescue loan package from the EU and the International Monetary Fund.

Greek treasury bills - short-term funding instruments used by governments - worth €4.56 billion must be re-paid this month.

Analysts had doubted an early return to markets as continued uncertainty over Greece's frail economy have kept its borrowing costs at prohibitive levels.

The country is labouring under a mountain of debt approaching €300 billion and its economy is caught in a recession spiral.

But the Greek finance minister last week said the country's return to borrowing after the massive EU-IMF loan bailout is 'no market test' and there should be no trouble finding demand.