Greece raises 5bn euros from bond issue

Eurozone leaders have agreed to help Greece if it needs financial assistance

Greece has raised 5bn euros ($6.7bn; £4.5bn) by a sale of government bonds, to secure more funds to help pull the country out of its debt crisis.

The seven-year bonds were sold at a yield - the interest rate investors are paid on government bond - of 5.9%.

This is less than the reported 6.3% yield on 10-year bonds sold at the start of the month, but longer bonds generally offer a higher return.

Reports said demand was also slightly weaker this time around.

But some analysts put this down to it being Easter week in Greece, and the fact that seven-year bonds are generally less popular than 10-year bonds.

Monday's bond auction was the first since eurozone leaders agreed an aid package for Greece last week.

"We have shown that we can issue all sorts of maturities and at more logical rates than previously," Greek Finance Minister George Papaconstantinou told state television NET.

However, Cyril Beuzit, a bond strategist at BNP Paribas, said the market "did not react particularly well" to the bond issue.

Debt concerns

Last Thursday, European leaders agreed to provide 22bn euros should Greece run into difficulties borrowing money to service its high debt levels.

The agreement ended weeks of speculation about whether Europe would come to Greece's rescue.

There had been fears that a deal might not be reached, with Germany arguing that Greece did not need help. Greece itself did not ask for direct financial help.

However, a compromise was agreed, with the International Monetary Fund contributing to the aid package.

The deal was agreed due to widespread concerns around the world that high levels of debt in Greece could have a knock-on effect on other highly indebted European countries.

Greece has until the end of May to refinance about 20bn euros of its debt.

The euro had fallen during the weeks prior to the European agreement, but has rallied since.

The currency rose by 0.7% on Friday and was up 0.26% to $1.34450 on Monday.

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