AMSTERDAM- The European Commission will use bond auctions to sell some of the debt backing its 750 billion euro recovery fund, the Commissioner for Budget and Administration said on Thursday.

"We will move away from an exclusive reliance on syndicated transactions towards use of some auctions," Johanness Hahn said at an online panel discussion within the IMF-World Bank Group annual meeting.

It would be the first time the EU uses auctions and is in contrast to the SURE unemployment scheme - a precursor to the much larger recovery fund - which the EU will start funding from the second half of this month using syndications, where banks hired by the borrower sell the debt directly to investors.

In auctions - the way most government debt is raised - banks acting as dealers for the borrower purchase bonds, which they can sell on to investors.

Hahn added that the Commission will codify its relationship with bank counterparties to ensure efficient financial support.

It will also support its issuance through liquidity management tools and support a liquid secondary market in its bonds.

Reuters first reported last week that the Commission was exploring using bond auctions. 

(Reporting by Yoruk Bahceli; Editing by Saikat Chatterjee) ((Yoruk.Bahceli@thomsonreuters.com; +44 20 7542 7571; Reuters Messaging: yoruk.bahceli@thomsonreuters.com))