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Greek borrowing costs soar as debt crisis deepens

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Greek borrowing costs soar as debt crisis deepens


Greece has plunged deeper into crisis, with markets driving its borrowing costs to new highs and pounding its bonds and banking stocks.

Pressure is piling on the debt-laden country amid scepticism over a dearth of details surrounding a proposed EU and IMF lifeline. For now, Greece insists it prefers to borrow from markets.

“We need to provide the markets confidence and this is, the lack of confidence is, causing all this decline in the spread,” said Manos Chatzidakis, head of investment strategy at Pegasus Securities SA. “The only thing we can do is to show some figures and to be persistent in our programme, in the stability programme.”

Government austerity measures have also sparked public anger. Some 2,000 protesters gathered for the latest rally yesterday, outside parliament in Athens.

“The future looks bleak…tragic,” said one demonstrator. “What will conditions be like for my kids tomorrow? …What will they live on?”

Reluctant to give in to the pressures, the Greek government has pledged to cut its public finance deficit by almost a third to 8.7 per cent of GDP this year.

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