FRANKFURT (MNI) - The European Central Bank said Tuesday that a total of E61.113 billion Eurosystem covered bond purchases had settled as of July 5.

As of July 4, settled acquisitions had totaled E61.083 billion, the ECB said Monday.

The program is aimed at revitalizing a market segment that has been exceptionally hard hit by the financial turmoil.

FRANKFURT (MNI) - Greece is now the second riskiest sovereign borrower in the world, according to a recent analysis by the data provider CMA, the Financial Times reported Tuesday.

Over the past three months, Greece has moved from ninth to second most likely to default within the next five years, a study of credit default swap (CDS) markets show.

BRUSSELS (MNI) - The European Union must dispel concerns about the fragility of its banking system and deliver on all its initiatives to improve governance and regulation if investor confidence in the bloc is to be restored, European Commissioner for Economic and Monetary Affairs Olli Rehn said on Monday.

BRUSSELS (MNI) - The European Union must dispel concerns about the fragility of its banking system and deliver on all its initiatives to improve governance and regulation if investor confidence in the bloc is to be restored, European Commissioner for Economic and Monetary Affairs Olli Rehn said on Monday.

FRANKFURT (MNI) - The European Central Bank Tuesday will reabsorb E59 billion in cumulative purchases of government bonds via a quick tender to collect one-week term deposits, the central bank announced Monday.

The operation, to be conducted on Tuesday at 9:30 GMT, will be in the form of a variable-rate tender with a maximum bid rate of 1.00%, the bank said.

The ECB intends to mop up E59 billion in liquidity, equivalent to the amount of bonds purchased through the Securities Market Program and settled as of last Friday, it said.

ATHENS (MNI) - Greece is on track to meet its 2010 deficit target and no additional austerity measures are needed for this year, finance minister George Papaconstantinou said at a press conference on Monday.

He added however, that certain risks remain. He also said he was "looking forward to returning for funding [the markets] in 2011."

By Emma Charlton

BRUSSELS (MNI) - The ability of Europe's banks to withstand market turmoil is in focus this week as investors worry about the solidity of the bloc's financial system and about whether tests currently under way are stringent enough to restore confidence.

In a bid to reassure the markets that the European Union's financial system won't bend under pressure, the bloc is currently assessing whether its largest banks have sufficient capital buffers to withstand financial market turmoil or the onset of another recession.

Source: U.S. Treasury Department Averages calculated by Market News International

Total Foreign Non- Bid/ amount Coupon add-on comps cover High % at Issue (Bln $) rate (Bln $) (Bln $) ratio Yield High

Average (Jan-97 to date) 0.121 2.26 2.493 59.66