Greece admits breach of bailout terms as audit begins

Monday, November 15, 2010
By Paul Martin
Tuesday, November 16

ATHENS (AFP) – – Greece acknowledged Monday it would breach conditions for a new instalment of a 110-billion-euro bailout as the IMF and European Union began an audit of the country’s austerity measures.

Greece’s Socialist government faced a week of tough talks with its benefactors and although bolstered by sweeping successes in local elections on Sunday, the outlook is still overshadowed by gloom on the economic front.

The Eurostat statistics agency issued its final revision of Greece’s accounts for the past four years, triggering a new forecast by Athens that its public deficit in 2010 would reach 9.4 percent of output, well above the 8.1-percent target.

Greek bond yields, a measure of investor confidence in the country’s finances, rose on Monday, with the rate on 10-year paper up to 11.280 percent from 11.184 percent on Friday.

Having flirted with insolvency until it was rescued by the International Monetary Fund and EU in May, Greece on Monday sought to reassure its partners that despite the latest figures, it remained on course.

It said it had in effect reduced its public deficit by a greater percentage than pledged as part of the 110-billion-euro (150-billion-dollar) EU-IMF rescue.

The Rest…HERE

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