The Greek government is moving toward restructuring its debt and could soon win approval for another $85 billion or more in international financing.News agencies reported on Tuesday that a year after Athens arranged a $158 billion bailout, the debt-ridden government is looking for more aid to cover its operations for the next two years. In addition to new financing, the European Union and International Monetary Fund could also extend the length of time Greece would have to pay back last year’s loans.The Greek Finance Ministry said details have yet to be worked out on any new financing. One senior official said decisions could be made as soon as next month.
Greece has imposed a variety of spending austerity measures and new taxes, but is plagued by a shrinking economy, higher borrowing costs and falling tax revenues. The Standard & Poor’s financial services firm cut the country’s credit rating on Monday over concerns that lenders might have to extend the time for Athens to repay its debts.Financial analysts say further assistance for Greece is temporarily good news, but that its underlying financial problems remain a concern. There is not unanimous European support for further financial assistance for Greece.Voters in Finland gave new support to anti-bailout lawmakers in last month’s national election. German Chancellor Angela Merkel, who oversees Europe’s strongest economy, says it is too soon to decide what, if anything, needs to be done to further aid Greece. – Voanews
