Government bonds with 26-week maturity brought Greece € 1.17 billion, announced the Public Debt Management Agency. The interest on the transaction reached higher levels than expected and grew to 4.82%. For comparison, the interest on the previous transaction with the same type of securities from July 13 this year cost the government 4.65%, which was assessed successful in the summer. Experts do not asses the interest growth on short-term bonds such as those of twenty six week maturity a positive sign because it shows that Greece still appears extremely unstable to international investors even in the short term.
The Agency announced that not so attractive deals worth € 270 million were registered, which were not approved. Bidding is done through the Primary Dealers, and the date of the agreement is set for September 17, 2010. At the same time, the maturity of other government securities worth € 4.7 billion is in October. Their amounts will be repaid in stages. The Public Debt Management Agency will issue new quarterly and six-month treasury bills the next Tuesday, September 21 this year. The President of the Public Debt Management Agency Petros Hristodoulou said in an interview with the international news agency Bloomberg that Greece does not intend to issue bills and government bonds of greater durability soon. The reason is that currently the memorandum of financial aid by the IMF, the ECB and the EC, which will provide low-interest loans in stages until 2013, satisfies the funding needs of the country.
The New Democracy opposition sharply criticized the government evaluating the results of the bidding as a failure. The economic expert from the blue party Christos Staikouras said it is apparent that the the international markets once again misunderstood the desire of the Prime Minister George Papandreou to restore the trust in the Greek economy and the reason for this is the combination of incorrect policies.