Cash strapped Greece has won back some confidence from the financial markets after floating 8 billion euros in new five-year bonds.
The move, which is aimed at off loading some of the country’s debt, was way over subscribed with the Greek finance ministry receiving 25 billion euros in orders for the notes.
The popularity of the sale points to Greece’s credit concerns being more manageable than many previously thought.
Prime Minister George Papandreou’s government is struggling to reduce a budget deficit of 12.7 percent of gross domestic product and needs to sell 53 billion euros of debt this year.
Greece’s credit rating was cut by two leading ratings agencies last month, triggering alarming media speculation over whether the EU member nation was about to go bankrupt.
With Greece appearing to be suffering more than most in the current recession, the government has been trying to convince the markets it can manage its ballooning debts. The issue of the five-year bonds was an important test of investor demand.