Thursday, March 04, 2010

BBC News - Greece bond issue oversubscribed

Greece has seen strong demand for its latest government bond issue in a vote of confidence for the country's debt-ridden economy.

The 5bn euro ($6.8bn; £4.5bn) issue was oversubscribed, an indication that some investors are not overly concerned about Greece defaulting on its debts.

But the government had to offer a high rate of interest to attract investors.

On Wednesday, Greece announced an austerity package worth 4.8bn euros in order to cuts its debt levels.

Despite the strong bond demand, the euro fell against the dollar.

The 16-nation currency fell by more than 1% to $1.3584. The euro had risen sharply on Wednesday.

BBC News - Greece bond issue oversubscribed

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