EU/IMF begin talks with Greece

A mission of EU and IMF officials began talks on Wednesday with Greece over details of a bail-out loan for the debt-ridden Mediterranean country. The talks, which are expected to last for 10 days, will focus on details and policies that could form the basis for loans agreed upon by eurozone states under a three-year program. EU/IMF begin talks with Greece The Socialist government has already cut public sector pay and frozen pensions as part of its austerity program. It has also hiked taxes to try to slash 8 billion euros (11 billion dollars) off a budget shortfall that amounted to 12.9 per cent of the country's GDP last year. With an estimated 30 billion euros coming from bilateral loans from eurozone states in the first year and another 10-15 billion euros expected from the IMF, the package would be the biggest multilateral bail-out ever attempted. Athens has not yet decided whether to apply to activate the emergency aid mechanism to avoid defaulting on its 300-billion-euro debt. European officials have said they would attach strict conditions to the loans calling for Greece to slash its debt over several years Many fear the international lenders could also demand further cuts in public sector wages for 2012- 2013: reducing private sector salaries, slashing public sector jobs, increasing the retirement age and further reducing pensions. Athens, which is being forced to pay soaring borrowing costs in the markets, will need to refinance 11 billion euros worth of bonds as they mature in May. Greece will need to refinance a total of 54 billion euros in 2010. Any decision to provide the eurozone loans would have to be made unanimously by all 16 government in the currency zone. Reports say Germany, where public opinion is strongly against helping Greece, might block or delay the aid. The EU has been grappling over how to respond to Greece's debt problem since February. On April 11, eurozone finance ministers approved the offer of a 30-billion-euro (40-billion-dollar) safety net, with the IMF to offer roughly half as much again. Germany emerged as the greatest opponent of a rescue. Talk of a bail-out is deeply unpopular in the country, where regional elections in the largest federal state are to be held on May 9. The majority of Greeks believe the austerity measures are unfair because they target lower earners. They also worry that the IMF will demand stricter measures in the next few years, which could bring about social unrest. As international lenders hammer out the tough austerity measures with the Greek government, social discontent continued across the country due to rising unemployment and a shrinking economy. Unemployment jumped to a six-year high of 11.3 per cent from 9.4 per cent in the same month last year. A total of 567,000 jobs were lost, a 22 per cent year-on-year increase. Port workers prevented ships from docking at Greece's largest port of Pireaus on Wednesday in protest over cuts while doctors and judicial employees walked off the job. ADEDY, the country's main civil service trade union, is holding a 24-hour strike on Thursday, its fourth this year. GSEE, the country's main private sector union, has said that it will also go on strike next month.

EU/IMF begin talks with Greece

The Socialist government has already cut public sector pay and frozen pensions as part of its austerity program. It has also hiked taxes to try to slash 8 billion euros (11 billion dollars) off a budget shortfall that amounted to 12.9 per cent of the country's GDP last year.

With an estimated 30 billion euros coming from bilateral loans from eurozone states in the first year and another 10-15 billion euros expected from the IMF, the package would be the biggest multilateral bail-out ever attempted.

Athens has not yet decided whether to apply to activate the emergency aid mechanism to avoid defaulting on its 300-billion-euro debt.

European officials have said they would attach strict conditions to the loans calling for Greece to slash its debt over several years

Many fear the international lenders could also demand further cuts in public sector wages for 2012- 2013: reducing private sector salaries, slashing public sector jobs, increasing the retirement age and further reducing pensions.

Athens, which is being forced to pay soaring borrowing costs in the markets, will need to refinance 11 billion euros worth of bonds as they mature in May. Greece will need to refinance a total of 54 billion euros in 2010.

Any decision to provide the eurozone loans would have to be made unanimously by all 16 government in the currency zone. Reports say Germany, where public opinion is strongly against helping Greece, might block or delay the aid.

The EU has been grappling over how to respond to Greece's debt problem since February. On April 11, eurozone finance ministers approved the offer of a 30-billion-euro (40-billion-dollar) safety net, with the IMF to offer roughly half as much again.

Germany emerged as the greatest opponent of a rescue. Talk of a bail-out is deeply unpopular in the country, where regional elections in the largest federal state are to be held on May 9.

The majority of Greeks believe the austerity measures are unfair because they target lower earners. They also worry that the IMF will demand stricter measures in the next few years, which could bring about social unrest.

As international lenders hammer out the tough austerity measures with the Greek government, social discontent continued across the country due to rising unemployment and a shrinking economy.

Unemployment jumped to a six-year high of 11.3 per cent from 9.4 per cent in the same month last year. A total of 567,000 jobs were lost, a 22 per cent year-on-year increase.

Port workers prevented ships from docking at Greece's largest port of Pireaus on Wednesday in protest over cuts while doctors and judicial employees walked off the job.

ADEDY, the country's main civil service trade union, is holding a 24-hour strike on Thursday, its fourth this year. GSEE, the country's main private sector union, has said that it will also go on strike next month.