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Greece raises money to pay off bond next week

Tuesday - 8/14/2012, 5:46am  ET

ATHENS, Greece (AP) - Greece's debt management agency says it has raised (EURO)4.06 billion ($5.01 billion) in an auction of short-term debt, money it will use to repay a bond next week.

But the debt-crippled country saw its borrowing costs rise, while demand for the 13-week treasury bills was much lower than in last month's issue.

The interest rate in the auction was 4.43 percent, up from last month's equivalent 4.28 percent. The auction was 1.36 percent oversubscribed as against 2.12 times last time.

Tuesday's successful treasury bill auction means Athens will not have to seek emergency funding to pay off a (EURO)3.2 billion bond that matures Aug. 20 and is held by the European Central Bank.

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