New 12-month T-bill to launch

Plans for a three-year state bond have been shelved for now, as conditions in the bonds markets remain uncertain, but the Finance Ministry is planning to issue a 12-month treasury bill next week.

The first auction of 12-month T-bills in eight years was decided some time ago, and the announcement could come as early as on Friday. The issue will replace the auction of three-month T-bills scheduled for Wednesday, March 14. However, ministry sources say the 12-month issue will not cover the entire amount of 1.6 billion euros from the three-month bills, coming instead to 1 billion.

The interest rate is expected to reach 1.5 percent. The last time a 12-month T-bill was issued was in April 2010, just before Greece entered the bailout program, when the interest rate reached 4.85 percent.

The ministry has chosen to tap the money markets again now as due to the relative...