Greece is leaning towards issuing T-bills to plug a cash squeeze this month as resumption of its bailout funding hinges on a positive assessment by European Union and IMF inspectors, its deputy finance minister told Sunday's Kathimerini newspaper.
Cash-strapped and behind targets agreed under a 130 billion euro ($160.4 billion) financial rescue package, Athens faces a 3.2 billion euro bond maturity on August 20.
"The situation (with cash reserves) is borderline and will remain so until September when the (EU/IMF/ECB) report will be concluded," Deputy Finance Minister Christos Staikouras told the paper in an interview.
"We are managing cash reserves carefully and exploring several solutions, such as an increase in the issuance of T-bills. We will choose the optimal solution in agreement with our partners," he said.
Shut out of bond markets, Greece issues T-bills on a monthly basis to refund maturing short-term paper. It needs to roll over 2.6 billion euros of six- and three-month T-bills this month.
German newspaper Die Welt said on Saturday the European Central Bank agreed on Thursday to raise the upper limit of T-bills the Bank of Greece can accept in exchange for emergency loans.
Read more: http://www.reuters.com/article/2012/08/04/us-greece-funding-idUSBRE8730JU20120804
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