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Greece Sees New Spike in Borrowing Rates

   VOA News 26 April 2010
   A  Greek  flag  flies  from  the  roof  of  a building as the house of
   Parliament is seen in the background in central Athens (File)

Photo: AP

   A  Greek  flag  flies  from  the  roof  of  a building as the house of
   Parliament is seen in the background in central Athens (File)

   The  price  Greece must pay to borrow fresh funds on financial markets
   topped  nine  percent  Monday,  despite assurances from Athens that it
   would not default on a huge debt repayment due next month.
   Analysts  say  the  nine  percent rate on 10-year bonds -- three times
   what  Germany pays -- reflects investor fears that Greece may some day
   fail to pay what it owes on its $400 billion public debt.
   The  debt crisis, which threatens economic stability across Europe and
   beyond,  worsened last week with new data showing Greek public debt of
   about  13.6  percent  of  the  nation's gross domestic product.  That
   figure is about 0.7 percent higher than earlier thought.
   The  European  Union  and  the International Monetary Fund are putting
   together a $60 billion loan package for Greece.
   But  analysts say tough conditions set by Germany for participating in
   the deal are driving lender doubts about the bailout.
   Those doubts, in turn, have spawned the surge in interest rates.
   Despite  the  bad news, Greek Finance Minister George Papaconstantinou
   said  Sunday he is confident his government will get international aid
   in time to avoid a loan default in mid-May.

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   Some information for this report was provided by AP, AFP and Reuters.

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