Gov’t to auction 1 bln euros of 3-month T-bills on March 11

Greece will auction 1 billion euros of three-month treasury bills on March 11 to refinance a maturing issue, debt agency PDMA said on Friday, announcing its second sale this month as the government faces a cash crunch.

Shut out of debt markets and with aid from its official creditors frozen, Athens is scrambling to meet this month’s funding needs, which include maturing treasury paper and a 1.5 billion-euro loan payment to the International Monetary Fund.

Issuing T-bills is the only source of commercial borrowing for the left-right coalition government of Prime Minister Alexis Tsipras. The country’s EU/IMF creditors have set a 15 billion-euro cap on such issues which has already been reached.

The European Central Bank made clear on Thursday it would not raise the limit on Greece’s issuance of short-term debt to help it avert a funding crunch, since EU treaty barred monetary financing of governments.

The settlement date of the new T-bills will be March 13, when a previous 1.6 billion-euro issue of three-month paper matures. Only primary dealers will be allowed to participate and no commission is to be paid.

A previous sale of 3-month T-bills in February was priced to yield at 2.50 percent.

Earlier this week Athens sold six-month paper, successfully rolling over a maturing issue but at the highest yield in 11 months.


Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.