LONDON (MNI) – Greece is now expecting to sell much less in
dollar-denominated bonds than previously expected, and it may even
cancel the sale altogether if “there is no strong interest in the U.S,”
the Wall Street Journal reported Thursday.

According to the newspaper, which cited an unnamed Greek government
official, Athens is now hoping to raise “up to $1 billion to $4
billion,” compared with $5 billion $10 billion previously anticipated.

“The fact is there is no strong interest in the U.S. for Greek
debt,” a second official was quoted as saying, adding that Athens could
cancel the issuance if “the minimum necessary amount can’t be
collected.”

Petros Christodoulou, head of Greece’s debt agency, PDMA, has
already indicated that Greece will soon do a roadshow in the U.S. and
possibly in Asia. He said Athens “could be in the market with a global
bond deal in dollars” at the end of April.

Christodoulou said that Greece’s April funding needs are taken care
of, but that the country needs to raise E11.6 billion by May to cover
the large redemption and coupon payments faced by the Hellenic Republic.

Greek spreads have resumed their widening move against German Bunds
following recent conflicting comments from EU members, reports of
potential delays and legislative requirements needed to trigger the E30
billion worth of loans put on offer by EMU governments.

Greek 10-year spreads earlier Thursday hit a five-day high above
the key 400 basis-point level at +427 basis points compared to the
benchmark 10-year German Bund.

That is just 16 basis points below the 11-year high hit on Thursday
April 8, which was just before the EMU finance ministers agreed to a
contingency 3-year loan plan for Greece.

The plan would envisage providing the Greek government — if it
requests the aid — up to E30 billion worth of loans in the first year
of the program, with more funding available in subsequent years. The
International Monetary Fund would kick in an additional E10 billion to
E15 billion in the first year, though details of that arrangement have
not been released.

Some in the market now speculate that this loan request may be
triggered by Athens sooner rather than later.

–London newsroom: 00 44 20 7862 7494; e-mail: nshamim@marketnews.com

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