Crippled Greece will need to go begging for more cash

Πηγή: 7days
Oct 9 2011


Crisis-hit Greece may have to borrow more money, the country’s representative at the International Monetary Fund (IMF) said yesterday.

The European nation’s borrowing needs will be higher than currently projected and governments or private bondholders will have to pick up the tab, Panagiotis Roumeliotis warned.

EU leaders agreed in July to provide Greece with a second bailout of 109 billion euros ($147 billion) to help it service its debt through to 2020.

But Roumeliotis says even that huge sum won’t be enough to right the struggling Greek economy.

“The financing needs will be greater, mainly because of the bigger-than-expected recession,” he said.

“This financing gap will have to be covered either by increasing the 109 billion euro loan agreed on July 21 or through a restructuring of private debt,” Roumeliotis added.

Meanwhile, Greek Prime Minister George Papandreou may propose the formation of a coalition government of national unity to lead the country out of its crisis, a Greek newspaper said, but the government has denied this.