Greece goes ahead with a new bond issue today. With this return to the bond market, the Greek government aims to raise cash necessary to fulfill its August obligations of 6.7 billion euros.
This return to bond markets coincides with the return of Greece's Troika of international creditors to Athens, for their next assessment on the progress made by the Greek government in meeting its prior action memorandum obligations.
Greece aims to raise 2.5-3 billion euros, at a rate below 3 percent
Sources say that the Finance Ministry is most likely to issue three-year bonds and to borrow an amount of between 2.5 and 3 billion euros, at an interest rate that will not be any higher than 3 percent. Official estimates are that the interest rate will be around 2.9-3.0 percent.
Successful T-bill auction
Greece on Tuesday successfully auctioned a six-month Treasury bill issue raising 1.625 billion euros from the market at a reduced cost.
The Public Debt Management Organization, in an announcement said that the interest rate of the issue was set at 2.05 pct, down from 2.15 pct of the previous auction of same issue in June 10. Bids submitted totaled 3.322 billion euros, 2.66 times more than the asked sum.
The organization will also accept non-competitive bids up to 30 pct of the asked sum by Thursday, 10 July.
Ministry officials very optimistic that today is the best day for the book-building process to start so that it can be concluded tomorrow, a day after the successful T-bill auction as well as the approval of the next disbursement of a 1 billion euro loan tranche by the Eurogroup meeting last Monday.
Troika returns to Athens today
The troika of international lenders are returning to Athens today. They will attend the Economist Conference later in the day, as their meetings with the Greek government start tomorrow.
Finance Minister, Gikas Hardouvelis holds his first meeting with the heads of the Troika mission tomorrow, that is after the completion of the bond issuing process.
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