Greece to issue debt to repay key bond

Cash-strapped Greece to issue treasury bills next week to raise money for key bond repayment

Associated Press

ATHENS, Greece (AP) -- Cash-strapped Greece will issue unusually short-term debt on Tuesday in the hope of raising enough money to make a key bond repayment days later.

It will issue €2.1 billion ($2.7 billion) in four-week treasury bills and €1 billion in 13-week bills, according to a statement Friday from the Greek Public Debt Management Agency.

Greece is not expected to get its next batch of international rescue loans by Nov. 16, when it has to roll over €5 billion in three-month treasury bills.

Greek authorities hope the bill auction will be oversubscribed, allowing the government to raise enough money to cover the Nov. 16 expenses.

The auction would be the shortest term loan since bailed-out Greece was shut out of long term debt markets in 2010.

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