Greece raises 812.5 mn as borrowing rate dips

Greece raised 812.5 million euros ($1.01 billion) in a six-month treasury bill sale on Tuesday at slightly lower rates, and is to use the funds to cover maturing debt obligations. "Total bids reached 1.29 billion euros," the government debt agency said in a statement, more than double the sum sought, with the rate paid to investors falling to 4.68 percent from 4.70 percent at the last equivalent sale on July 10. Auditors from the cash-stripped country's European Union, IMF and European Central Bank (ECB) creditors left Athens on Sunday, following a visit to inspect Greece's progress in implementing reforms that are part of its bailout packages. They are expected to return in September, with Poul Thomsen of the International Monetary Fund telling reporters that "we made good progress" before his departure. Greatly affected by a political deadlock, the result of back-to-back elections in May and June, Greece is off track in its program and faces great international pressure to meet its promises. The conservative-led coalition government has yet to finalise 11.6 billion euros of spending cuts for the next two years, a condition to receive the next installment of its EU-IMF bailout package. Finance minister Yannis Stournaras has said that the coming weeks are crucial for the country's future. The country also needs to redeem a 3.2-billion-euro bond held by the ECB when the bond expires on August 20. A Greek finance ministry source recently told AFP that additional treasury bill auctions were being considered for August, to compensate for the cash shortfall. On Saturday German newspaper Die Welt reported that the ECB has moved to stave off Greek bankrupcty for the time being by guaranteeing additional emergency loans from the country's central bank. The ECB's governing council decided at a meeting Thursday on the move which will give Greece access to another four billion euros of funds and ensure its financial survival until September, the newspaper reported.