For_Greece_Bond_Sale - For Greece, Bond Sale Is a Step Back...

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For Greece, Bond Sale Is a Step Back From Disaster By LANDON THOMAS Jr. and DAVID JOLLY LONDON — After pledging to mend its profligate ways, Greece took a crucial step on Thursday toward raising the billions needed to pay its bills and contain the crisis threatening the euro. Protesters in Athens burned a European Union flag on Thursday. Two large Greek unions announced a four-hour work stoppage to begin at noon on Friday. Even as members of a large labor union occupied the offices of the Finance Ministry in Athens early on Thursday to protest proposed budget cuts, the Greek government won a vote of confidence for its plans in the credit markets. With many investors expecting Greece’s richer neighbors to come to the nation’s aid, Athens easily sold 5 billion euros ($6.8 billion) of 10-year bonds. The sale went far better than expected, as investors sought to buy three times the amount of bonds being offered. Still, in order to lure buyers, Greece agreed to pay an annual interest rate of 6.37 percent, twice the rate on comparable German bonds. Athens seized the opportunity to raise the money after announcing on Wednesday that it would cut spending and raise taxes, a move that eased concern over its runaway budget deficit. “This was a very, very good deal,” said Petros Christodoulou, the head of Greece’s debt
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This note was uploaded on 05/07/2011 for the course BUS 1302 taught by Professor Falcon during the Spring '11 term at University of Texas at Dallas, Richardson.

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For_Greece_Bond_Sale - For Greece, Bond Sale Is a Step Back...

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