Greece Raises EUR 5 B from Government Bond Sale

The seven-year bonds were sold at a yield - the interest rate investors are paid on government bond - of 5,9%. Photo by BGNES

Greece has raised EUR 5 B by a sale of government bonds, to secure more funds to help pull the country out of its debt crisis.

The seven-year bonds were sold at a yield - the interest rate investors are paid on government bond - of 5,9%.

This is less than the reported 6,3% yield on 10-year bonds sold at the start of the month, but longer bonds generally offer a higher return.

Reports said demand was also slightly weaker this time around, the BBC stated.

But some analysts put this down to it being Easter week in Greece, and the fact that seven-year bonds are generally less popular than 10-year bonds.

Monday's bond auction was the first since eurozone leaders agreed an aid package for Greece last week.

"We have shown that we can issue all sorts of maturities and at more logical rates than previously," Greek Finance Minister George Papaconstantinou told state television NET.

Last Thursday, European leaders agreed to provide 22bn euros should Greece run into difficulties borrowing money to service its high debt levels.

The agreement ended weeks of speculation about whether Europe would come to Greece's rescue.

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