Greece raises $2.3 billion after rating cut

Associated Press/Seattle Times
March 8, 2011

Greece raised euro1.625 billion ($2.28 billion) in an auction of treasury bills Tuesday, though the higher interest rate it has to pay showed investor unease a day after the country's credit rating was downgraded sharply.

In return for selling the 26-week bills, Greece had to pay an interest rate of 4.75 percent, the Public Debt Management Agency said. The rate was up from the 4.64 percent it had to pay in a similar auction last month, but lower than the 4.90 percent demanded in January.

Though investors wanted a higher rate in return for their cash, the Greek government still managed to raise more than the original offer of euro1.25 billion. Demand was relatively healthy, with the auction 3.59 times oversubscribed.

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