Greek banks announce $8.8bn bonds issues

7 November 2011

Government-guaranteed bonds worth €6.4 billion ($8.8 billion) have been issued by three major financiers in Greece in order to try to attract funding from central banks.

Pireaus, EFG and Alpha Bank have announced their decision to use this figure as collateral to then receive further capital from central banks as they attempt to survive the ongoing fiscal crisis engulfing the nation, the Financial Times reports.

Earlier in the year, a new €30 billion liquidity facility was set up by policymakers to help Greece's banks, but the organisations had not been able to take full advantage of this due to central institutions' reluctance to accept them as collateral.

However, it appears that this stance has now changed somewhat as Greek banks have seen their deposits decline steadily in recent times and now require alternatives to help their plight.

Recently, the Daily Telegraph reported that the European Investment Bank has tightened its business lending criteria.

By Claire Archer

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