Greece heads to market to avoid cash crunch
Friday 09 November 2012
Printable
EmailGreece scrambled to stay afloat today by issuing short-term bonds to bridge the funding gap until its creditors decide to release the latest slice of bailout loans.
MPs backed a fresh £10.5 billion assault on workers' rights and living conditions by a narrow margin last week in return for more cash borrowed from the International Monetary Fund, European Central Bank and European Union.
However the trio of creditors, the so-called "troika," want more time to pick over the extent to which their privatisation and cuts demands have been executed before they release the next payout.
A meeting on November 26 is expected to give the green light, because not doing so would see Greece exit the eurozone and create a major crisis.
The delay means that Athens needs a short-term cash fix to pay its bills, and so is going to the markets with a four-week bond designed to raise some ready capital.
Greek unions will stage demonstrations again this weekend as MPs vote on a 2013 austerity budget.
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