Greece raises 1.3 bn euros at lower borrowing rate: debt agency

A demonstrator holds up a Greek flag in front of the parliament in Athens during a general strike on July 16, 2013

Greece on Tuesday raised 1.3 billion euros ($1.7 billion) with a sale of three-month treasury bills at a lower borrowing rate of 3.9 percent, the public debt management agency said.

"Total bids reached 2.025 billion euros and the amount finally accepted was 1.3 billion," the agency said in a statement.

At the previous auction of three-month treasury bills in September, Greece had raised 1.625 billion euros with a borrowing rate of 3.95 percent.

Shut out of the long-term markets since 2010, the heavily indebted country has been relying on international rescue loans for its economic survival, although it regularly issues short-term debt.

The draft budget for 2014 presented by the government showed that the Greek economy will grow by 0.6 percent, finally emerging from six years of deep recession.

Greek authorities are now finalising the budget with representatives of the so-called troika of creditors, the EU, IMF and the European Central Bank.

Greece plunged into recession in 2008 when the global economic crisis hit, and rising borrowing costs on its massive debt forced the country to seek financial aid in 2010.

So far, the EU and International Monetary Fund have committed a total of 240 billion euros in two bailout deals to Greece.

A demonstrator holds up a Greek flag in front of the parliament in Athens during a general strike on July 16, 2013