UPDATE 1-Greece could proceed with T-bill auction in July-finmin

* Finmin: Greece could make return to markets in July

* “Everything will depend on yields”

(Adds quotes, details)

ATHENS, June 1 (BestGrowthStock) – Greece could launch a treasury
bill auction in July, marking its first return to the markets
since it was awarded an aid package by the European Union and
the International Monetary Fund, its finance minister said.

Greece can continue to issue T-bills during the 3-year,
110-billion euro emergency funding programme agreed with the
European Union and the IMF earlier this month.

Asked when Greece was planning to return to the markets,
George Papaconstantinou told Greek NET TV late on Monday: “The
(aid package) money is sufficient till the start of 2012.”

But asked if the government was planning to issue T-bills
in July to cover maturing short-term debt, he said: “Yes … We
have short-term paper expiring, some of it in July, then we
will be in the markets.”

A total of 4.56 billion euros ($5.59 billion) of T-bills
mature in July — 2.16 billion euros of one-year and six-month
government paper comes due July 16 and another 2.4 billion of
13-week T-bills on July 23.

Greece comfortably covered a sale of 3-month T-bills in
April, before the EU/IMF aid package was agreed, raising 1.95
billion euros to fund maturing short-term paper. But it had to
pay twice as much in yield compared to a previous auction in
January. The yield for 3-month T-bills rose to 3.65 from 1.67

“Everything will depend on yields,” Papaconstantinou said
regarding any return to the markets.

The minister added that the Greek banking system was not in
danger and that deposits were “1000 percent” safe.

Greek banks (.FTATBNK: ), which are hit by recession and
government austerity measures, have underperformed European
peers (.SX7P: ) since the start of the year. [ID:nLDE64Q1B3]

The country’s debt crisis, which sparked contagion fears
and roiled the euro, has hurt them through higher funding
costs, a squeeze on margins and trading losses tied to their
government bond holdings.


(Reporting by Lefteris Papadimas, writing by Ingrid Melander;
Editing by Marguerita Choy)

UPDATE 1-Greece could proceed with T-bill auction in July-finmin