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Greece raises $2.3 billion as PM urges action

Greece raises $2.3 billion as PM urges action

Greece raised (EURO)1.625 billion ($2.28 billion) in an auction of 26-week treasury bills Tuesday a day after Prime Minister George Papandreou warned that the country's austerity program may not be enough if Europe fails to act more decisively.
Though the rate the country had to pay fell to 4.9 percent from 4.96 percent at an equivalent auction a month or so back, Greece is still having to pay a hefty premium to what other countries using the euro are having to pay. Greece has been locked out of long-term debt markets by exorbitant borrowing costs, with the interest demanded for 10-year bonds remaining above 17 percent.
Though current market concerns are centering on Italy and Spain, Greece's future remains a real cause for concern. Worries over Europe's debt crisis engulfing Spain and Italy weighed on stock markets and the euro once again on Tuesday. Shares on the main Athens stock market were down 2.50 percent at 1,188.45.
Greece, which narrowly avoided a debt default earlier this month, is in negotiations for a second bailout.
Eurozone finance ministers failed to finalize details of a second financial rescue package for Greece in a meeting Monday.
In an open letter to Jean-Claude Juncker, chairman of the eurogroup, Papandreou urged swifter and bolder action if contagion is to be avoided.
"I am now convinced, after fourteen months, that no matter what Greece does _ and we have proven ready to live up to our responsibilities _ if Europe does not make the right, collective, forceful decisions now, we risk new, and possibly global, market calamities due to a contagion of doubt that will could engulf our common union," he said. "Strong and visionary European leadership is needed."


Updated : 2021-04-15 10:47 GMT+08:00