Greece sells €1.95 billion ($2.53 billion) worth of 13-week treasury bills

Greece raises $2.53 billion in debt sale

ATHENS, Greece — Greece on Tuesday raised euro1.95 billion ($2.53 billion) in the sale of 13-week treasury bills, the country’s Public Debt Management Agency said, its second debt auction since receiving rescue loans in May.

The sale, which had originally been for euro1.5 billion, was oversubscribed by 3.85 times at a yield of 4.05 percent, slightly higher than the 3.65 percent yield for the previous issue of such bills in April, the PDMA said.

The sale came a week after debt-ridden Greece tapped the market for the first time since receiving joint European Union and International Monetary Fund rescue loans. On July 13, it raised euro1.625 billion in 26-week treasury bills that were oversubscribed 3.64 times, with a yield of 4.65 percent.

Debt-ridden Greece narrowly avoided bankruptcy in May and was pledged up to euro110 billion in rescue loans from the International Monetary Fund and the 15 other European Union countries that use the bloc’s joint currency, the euro.

To secure the funds, Greece’s Socialist government imposed tough austerity measures, including cutting civil service salaries, and began overhauling its pension and labor systems, angering labor unions and triggering a series of strikes and protests.

Unions continue to oppose cost-cutting reforms targeting waste in the welfare system. Doctors at state-run hospitals are on a five-day strike through Friday to protest plans to revamp the National Health Service.

Greece’s finance ministry says effort to slash the country’s budget deficit from 13.6 percent of gross domestic product in 2009 to 8.1 percent this year remain on track, and says its 2010 prediction of a 4 percent contraction in economic output may have been too severe.

But the country also reported more dismal financial data Tuesday, with industrial orders down 1.5 percent on the year in May, according to the country’s statistics agency.

Hopes that Europe’s financial recovery will buoy Greece’s vital tourism industry were also hurt by a 5.3 percent drop in overseas tourist arrivals in the first quarter, dipping to 980,411 visitors.

Tourism industry leaders have warned that Greece’s frequent strikes and demonstrations have dented early holiday bookings this summer.