ECONOMY

Greece to sell 2.25 bln euros of T-bills on June 10

Greece will sell a total of 2.25 billion euros ($2.53 billion) of six- and three-month Treasury bills on June 10 to refinance two maturing issues, the country’s debt agency said on Friday.

The auctions will be another test of whether the leftist-led government can find other sources to plug a potential gap if foreign investors refuse to roll over their T-bill exposure.

As it continues to wrangle with its euro zone backers and the IMF to lighten the reforms they demand in return for further loans, Greece wants an increase in the amount of T-bills it can issue to deal with its cash crunch.

But the European Central Bank has resisted calls by Athens to be allowed to bridge its funding gap by having banks buy more short-term government debt before lenders agree that its bailout is back on track and begin to release remaining aid.

A previous sale of six-month T-bills last month was priced to yield 2.97 percent, with three-month paper sold at a yield of 2.70 percent.

The settlement date of the new T-bills will be June 12. Only primary dealers will be allowed to participate and no commission is to be paid.

Greece faces another rollover later this month as 1.6 billion euros of three-month T-bills mature on June 19. (1 US dollar = 0.8883 euro) [Reuters]