**Investors’ confidence in Greece’s financial health is about to be tested as Athens issues 1.2bn euros ($1.6bn; £1bn) in treasury bills.**The bond issue will be a key test following Sunday’s decision by eurozone members to agree a standby aid package for the debt-laden economy.
However, investors remain cautious about the Greek fund raising.
Pacific Investment Management (Pimco), the world’s biggest investor in bonds, looks likely to shun the issue.
Mohamed El-Erian, Pimco’s chief executive, told the Reuters news agency that the eurozone’s rescue package did not address Greece’s fundamental crisis.
“Markets have signalled that Greece faces both refinancing, or liquidity challenges, as well as stock of debt, or solvency challenges,” Mr El-Erian said.
“Based on what we know right now, we would not be a buyer [of the Greek bonds]. We are very cautious toward Greece and we are in a ‘wait and see’ attitude and we would like to see greater evidence of adjustment on Greece,” he said.
Greece must raise about 11bn euros by the end of May to refinance maturing debt and interest charges. Its overall 2010 borrowing need is 53bn euros.
Some analysts believe the fund raising will go smoothly, as the sale of the six-month and 12-month treasury bills have short maturities.
However, Greece is soon to raise another $10bn via longer-term bills, which will test investors’ appetite for locking in their money for a longer period.This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.