Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Ebola virus : Liberia shuts most border points

Read more

MEDIAWATCH

"What would you do?"

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine (part 2)

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine

Read more

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

#TECH 24

Internet of Things

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

  • Israel warns of ‘prolonged’ campaign in Gaza

    Read more

  • In pictures: From Gaza to Mosul, bittersweet end of Ramadan for Muslims

    Read more

  • France offers asylum to Iraqi Christians

    Read more

  • Tripoli threatened by out of control blaze

    Read more

  • Moroccan police arrest French al-Qaeda recruiter

    Read more

  • US, EU agree on tougher sanctions package against Russia

    Read more

  • French mayor files complaint against US father who risked kids’ lives on Mont Blanc

    Read more

  • French footballer Griezmann headed to Atletico Madrid

    Read more

  • Luc Besson’s sci-fi thriller ‘Lucy’ tops US box office

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • Thousands gather in Marseille in support of Israel

    Read more

  • As France’s Carrefour pulls out, what next for India’s retail market?

    Read more

  • Liberia tightens border controls to curb Ebola outbreak

    Read more

  • The centenary of Austria-Hungary’s calamitous last hurrah

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

Europe

Prime minister officially requests joint EU-IMF debt rescue plan

Video by Olivia SALAZAR WINSPEAR

Text by FRANCE 24 (with wires)

Latest update : 2010-04-23

Greek Prime Minister George Papandreou officially requested an economic relief package on Friday worth €45 billion from the European Union and the International Monetary Fund to help the country avoid defaulting on its debt.

Greek Prime Minister George Papandreou officially asked for the activation of an EU-IMF debt rescue mechanism on Friday.
   
Papandreou made the request shortly before Finance Minister George Papaconstantinou leaves for Washington for talks with IMF Director-General Dominique Strauss-Kahn.
   
The three-year stand-by package by the European Union and International Monetary Fund is worth about 45 billion euros (60 billion dollars) at interest of about 5.0 percent in the first year.
   
But experts from the two bodies and the European Central Bank must still work out details of how the scheme would work.
   
Shortly before the announcement, German Economy Minister Rainer Bruederle said a knee-jerk reaction to the Greek crisis would be wrong, adding that Athens has not yet reached the point where aid is required.
   
"We are watching the situation closely and we are taking it seriously. But we will not make a knee-jerk reaction. That would be exactly the wrong reaction," Bruederle told the German parliament.

France 24's Christophe Robeet analyses Greek request for debt rescue plan

   
The members of the eurozone and the International Monetary Fund stand ready to come to Greece's aid "as a last resort", said Bruederle, whose government has been reluctant to help Greece.

"Until now, this situation has not happened," he said.
   
The announcement in Athens came in response to a new wave of pressures on Greece in the form of an EU upgrade of its huge public deficit for last year with possibly more to come because of doubts of Greek data, a ratings downgrade of Greek debt, and a surge in Greek borrowing costs to far above 8.0 percent.
   
Analysts on financial markets consider that Greece had no option but to ask for a rescue if it is to avoid default on part of its debt falling due in May and pay bills that come due during the rest of the year.
   
Pressure is also rising on the European Union and eurozone, because the cost of borrowing for Portugal also shot up on Friday. This was seen as a sign by analysts that a risk of contagion to other eurozone countries considered at risk is rising. The euro has fallen to its lowest values against the dollar for 12 months.
   
The International Monetary Fund warned on Wednesday of the risk that the Greek crisis could spread to other eurozone countries, prompting a sovereign debt crisis.

 

Date created : 2010-04-23

  • GREECE

    Moody's downgrades Greek debt further on day of strikes

    Read more

  • GREECE

    Eurostat says Greek debt is worse than previously thought

    Read more

  • GREECE

    Thousands strike hoping to influence talks with EU and IMF

    Read more

COMMENT(S)