Greece 'will go bankrupt' without debt deal

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Greece 'will go bankrupt' without debt deal

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Greece faces bankruptcy if it fails to agree a debt swap deal with investors, according to the country’s finance minister Evangelos Venizelos.

Athens and private lenders are reportedly close to an agreement to restructure two hundred billion euros of debt amid ongoing talks over its latest bailout.

Evangelos Venizelos said on Tuesday: “If (Greek health and pension) funds do not take part in the Private Sector Initiative, the country will be destroyed fiscally and financially, it will go bankrupt.”

“When a country goes bankrupt there is no sufficient state budget to fund on a yearly basis the health and pension funds, to cover their deficit, to secure the pensions.”

Greece must convince its international lenders that it can pass further cuts so it can tap a 130-billion-euro rescue package.

The Financial Times reported on Saturday that Germany wants Athens to cede budget control to Brussels if it regularly misses targets set by the EU, the IMF and the ECB.