Greece yesterday raised €1.625 billion in a sale of three-month Treasury Bills at higher cost and amid strong speculation of an imminent loan shake-up that has pushed rates sky-high.

The Greek debt management agency said the yield had risen to 4.1 per cent from 3.85 per cent offered in the last three-month bill sale in February.

“Total bids reached €4.316 billion and the amount finally accepted was €1.625 billion,” the agency said.

The auction had originally aimed to raise €1.25 billion.

The latest sale came as a flurry of reports citing unnamed Greek and European officials fuelled rumours that Athens would imminently seek to ease its repayment schedule on a crushing debt that has exploded to €340 billion.

Official denials from the Greek government, the European Commission and the International Monetary Fund that a debt restructuring is not on the cards have failed to quell the speculation.

Amid signs that the country’s fragile economic recovery is running out of steam, rates on longer-term Greek credit have soared to record levels.

The rate of return on Greek benchmark 10-year government bonds jumped above 14 per cent on Monday for the first time since the eurozone was created.

Up from 13.712 per cent on Friday, such levels are completely unsustainable for a Greek economy gripped in deep recession.

Adding to the pressure, Athens is bound under the terms of its recent bailout loan from the EU and the International Monetary Fund to start raising its own money on the market as from next year.