ATHENS Aug 16 Greece on Thursday sold an
additional 937.5 million euros ($1.15 billion) of three-month
T-bills, bringing total proceeds from Tuesday's auction to repay
a maturing government bond to 5.0 billion euros, the country's
debt agency (PDMA) said.
PDMA has stepped up its T-bill issuance to meet a 3.2
billion euro government bond redemption on August 20 and roll
over 1.6 billion of three-month paper maturing on August 17. The
maturing bond is held by the European Central Bank.
Starved of funding options, Athens increased the size of its
monthly auction after the ECB agreed to raise the ceiling on the
amount of T-bills the Bank of Greece can accept as collateral in
exchange for emergency loans.
The government thus gained access to up to an extra 4
billion euros of funds. Greek banks taking up the bulk of T-bill
issues can park the paper at the local central bank to tap its
emergency liquidity assistance (ELA) window.
On Tuesday, the three-month T-bills were priced to yield
4.43 percent, up from 4.28 percent in a previous July 17 sale.
The auction's bid-cover ratio came to 1.36 versus 2.12