PDMA prepares for monthly T-bills
Greece will start selling Treasury bills each month as of September to maintain regular access to markets, according to the head of the Public Debt Management Agency (PDMA). «This will enable us to have more regular issuance than on a quarterly basis, avoid gaps in market access and optimize our liquidity management,» Petros Christodoulou told Bloomberg. Twenty-six and 52-week bills will be sold on the second Tuesday of each month, while 13-week bills will be sold on the third Tuesday of each month, according to PDMA. The amount to be sold will be announced on the Friday before the auction. State financing needs are fully covered by loans under a plan agreed by the European Union and International Monetary Fund and the government is able to roll over its «relatively small stock of T-bills,» the Finance Ministry said yesterday. Greece raised about 4.4 billion euros from selling 13- and 26-week Treasury bills last month, according to data from the Public Debt Management Agency’s website, the first auctions since it received an European Union rescue package back in May. Punished for fiscal profligacy, Greece had to pay eight times as much for six-month paper recently as Germany did for one-year debt, highlighting the uphill struggle Athens faces to regain market confidence. Monthly T-bill auctions will help to smooth maturity profiles, as Greece’s liquidity position remains tight. «The practice of three- and six-month auctions at more regular intervals and smaller amounts will give PDMA more leeway and help toward better cash management,» said a bond dealer at a Greek bank. «It will not affect borrowing costs.»
