NEW YORK (CNNMoney) -- It looks like Greece will be able to

New Post Public Reply Private Reply Replies (0) Message Board
lucyinthesky

NEW YORK (CNNMoney) -- It looks like Greece will be able to make its latest bond payment next week, thanks to some creative financing.

The Greek government sold over €4 billion worth of three month bills on Tuesday, which analysts say will be used to repay €3.2 billion in bonds held by the European Central Bank that mature on August 20.

Greek banks were the main buyers at Tuesday's auction, because most outside investors are still unwilling to lend money to Athens.

However, since the ECB decided in July to stop accepting Greek government bonds as collateral, Greek banks have been dependent on the Greek central bank for emergency liquidity. The banks are widely believed to have used central bank money to buy the bills.

"Greece has basically been feeding off the eurosystem at one window to repay it at another," said Nicholas Spiro, director of London-based consultancy Spiro Sovereign Strategy, referring to the group of 17 eurozone central banks. "It's just a recirculation of the funds."

The immediate goal is to avoid a messy default that could force Greece out of the euro currency union and set off a market panic that drags down Spain and Italy.

European economy slumps in second quarter

But the proceeds from this week's debt sale could also help cover any budget shortfalls that occur if the latest installment of Greece's bailout money is delayed, said Dimitri Papadimitriou, a professor of economics at Bard College.

"It was convenient to have this arrangement coming to fruition," said Papadimitriou.

Greek prime minister Antonis Samaras and his partners in the coalition government are struggling to find an additional €11.5 billion in spending cuts required by the European Union, International Monetary Fund and ECB, known as the troika.

Troika officials are set to return to Athens in early September to complete their review of the government's finances. That means eurozone finance ministers will probably not make a decision on Greece's bailout money until they meet on October 8.

In the meantime, Samaras is expected to push for a two-year extension of Greece's bailout program, which would give the government more time to implement difficult reforms. He is scheduled to meet next week with German Chancellor Angela Merkel and French President François Hollande, among other top eurozone officials.

Citi: Chance of Greek eurozone exit at 90%

Germany in particular has been reluctant to make concessions for Greece, and some German politicians have said that a Greek exit from the eurozone would be manageable.

While the eurozone has strengthened its financial firewall, economists say it is impossible to predict what would happen if Greece were to leave the currency union.

The stakes are particularly high as borrowing costs for Spain and Italy have drifted upward recently, rising back near unsustainable levels. Investors are particularly concerned about Spain, which is widely expected to ask the eurozone bailout fund and ECB to intervene in the bond market.

"No one wants to gamble on a disorderly Greek exit from the eurozone," said Spiro. To top of page

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Ericsson Executes Bold Share Buyback Plan in Oct.

Updated Category News Views 0

Ericsson Kicks Off October with Major Share Repurchases Ericsson's taking bold steps in consolidating shareholder value, and folks, this ain't your run-of-the-mill stock-in-the-drawer move. Between October 19 and 23, 2026, Ericsson picked up 500,000 of its own Class B shares. Yep, you heard right—half a million shares just like that, with a neat price tag rounding out...

Continue Reading
Dr. Boonipat Inspires Future Women Surgeons at Texas Tech

Updated Category News Views 294

Sowing Surgical Seeds in Lubbock In Lubbock, Texas, something meaningful unfolded—an event the big market players would hardly blink at, but a significant step for the future of medicine. Led by Dr. Thanapoom "Mo" Boonipat, the founder of FacePlus Plastic Surgery Institute, a unique suturing workshop provided premed students at Texas Tech University hands-on experience...

Continue Reading
Love Business Group Helps SMEs Navigate Broadband Choices

Updated Category News Views 215

Understanding Broadband Needs for UK SMEs When you're knee-deep in running a small biz in the UK, sorting out your broadband needs can feel like sifting through a thousand-piece puzzle. Enter Love Business Group, getting a nod of recognition for being the SME knight in shining armor. Aimed at businesses of all sizes, they've been pegged by Expert Consumers for helping...

Continue Reading
OncoHost's Research Links TKI Sensitivity to Biology

Updated Category News Views 28

Cracking the Code on TKI Sensitivity When it comes to medicine, sometimes the trickiest part is knowing which button to push—especially in the high-stakes world of metastatic renal cell carcinoma (mRCC). OncoHost just dropped a bombshell at the ESMO 2026 Congress about their new plasma proteomics model that lets us peer into what makes some patients click with Tyrosine...

Continue Reading
Miranda Lambert Lights Up Red Kettle Campaign

Updated Category News Views 262

A Star-Studded Start to the Season of Giving Miranda Lambert is set to dazzle audiences yet again, and if there's one thing this country music titan knows, it's how to crank up the heartstrings while fanning the flames of generosity. She'll take to the stage at AT&T Stadium this Thanksgiving during the Dallas Cowboys game, bringing a powerful performance to light up the...

Continue Reading
Ivonescimab Promises New Hope for Advanced BTC Patients

Updated Category News Views 337

Shifting the Paradigm in Biliary Tract Cancer Treatment Here's the scoop from the bustling world of oncology: the trial of Ivonescimab plus chemotherapy is stirring waves among experts in advanced biliary tract cancer (BTC). Contrary to the usual drowsy mornings with coffee and market pages, this data from Hong Kong wasn't about Wall Street this time. This trial might...

Continue Reading
D-Wave Investors Must Decide by Dec 15 Class Suit

Updated Category News Views 177

Facing the Class Action Deadline There's nothing like a looming deadline to stir the pot, and that's exactly what's happening with D-Wave Quantum Inc. (NASDAQ: QBTS) as it faces the heat of a class action lawsuit. Investors who got caught in the slide between February 26, 2026, and August 25, 2026, need to sharpen their pencils and mark December 15, 2026, on their...

Continue Reading
TORRAS Cases Balance Protection with Slim Design for 2026

Updated Category News Views 260

Are Slim iPhone Cases Really Protecting Your Investment? Anyone who's dropped a brand-new phone knows the pain of watching your investment smack the concrete. But hey, welcome to 2026, where Consumer365's latest rundown on iPhone protective gear turns the spotlight on TORRAS. These folks grabbed attention with their Q3 Air and Q3 Air Pro cases, crafted for iPhone 18 Pro...

Continue Reading
Shenzhen Hosts FDI Moot: A Key Milestone for Arbitration

Updated Category News Views 25

Shenzhen Steps into the Arbitration Spotlight In a move that's bound to tweak some eyebrows in the legal realm, Shenzhen just hosted the 2026 Foreign Direct Investment International Arbitration Moot (FDI Moot) Global Finals. This marks the first time the finals have landed on Chinese soil, and folks, that's a big deal. It’s a hefty nod to China's expanding credibility...

Continue Reading
Redwood and SAP Partner on Secure File Transfer

Updated Category News Views 54

Redwood Advances SAP Interiors with New File Solution October 26, '26 is now a landmark for Redwood Software. They've just rolled out their SAP Managed File Transfer solution. Got the brainpower behind Redwood and SAP operating together here, and they're offering this to enterprises aimed at optimizing their file-based workflow. If you're scratching your head just hearing...

Continue Reading

Top 5 Most Recently Viewed Articles

Netflix Engagement Report Reveals Dominance in Streaming World

Updated Category News Views 447

Netflix's Streaming Triumph in 2024 Streaming powerhouse Netflix Inc NFLX has just unveiled its engagement report for the first half of 2024, highlighting impressive viewership trends that have propelled the service to new heights. The report details how a diverse selection of international titles and various genres are bolstering Netflix's strong standing within the...

Continue Reading
Maravai LifeSciences Announces Fourth Quarter Results and Future Outlook

Updated Category News Views 114

Maravai LifeSciences Financial Results Unveiled As a premier player in the life sciences sector, Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) provides essential reagents and services to the biotech industry. Recently, the company revealed its financial performance for the fourth quarter and the entire year ended December 31, 2024, alongside critical updates...

Continue Reading
Freeport-McMoRan Adjusts Expectations for Future Growth

Updated Category News Views 329

Freeport-McMoRan Adjusts Future Production Outlook Freeport-McMoRan, Inc. (NYSE: FCX) has recalibrated its expectations for its prominent Grasberg mine after concluding an investigation related to a recent operational issue. The company has announced lower-than-anticipated multi-year production guidance while indicating that operational challenges are beginning to ease....

Continue Reading
Alterity Therapeutics to Present Key Data at International MDS Congress

Updated Category News Views 69

Alterity Therapeutics Shines at the International Congress of Parkinson's Disease Alterity Therapeutics (NASDAQ: ATHE), an innovative biotechnology firm focused on fighting neurodegenerative diseases, is thrilled to announce its involvement in the upcoming International Congress of Parkinson's Disease and Movement Disorders. Scheduled from September 27 to October 1, the...

Continue Reading
Navigating the Future: Cox Automotive's 2025 Compliance Strategies

Updated Category News Views 196

Cox Automotive Unveils Essential Compliance Guide for 2025 Cox Automotive has officially published its latest Dealertrack Compliance Guide, designed to equip automotive dealers with vital information and actionable strategies for the year ahead. As the industry braces for significant market changes, including trends toward vehicle electrification and the rise of...

Continue Reading