Crisis forces Greece to "hold breath until May"

Greece, plagued by high borrowing costs to avoid default, will be holding its breath until it rolls over debt due in May. This is according to Finance Minister George Papanconstantinou, who spoke on Wednesday. Crisis forces Greece to "hold breath until May" "Hopefully getting through the month of May will mean that market attention will finally be taken off of Greece," Papanconstantinou told Greek state television NET. Greece will be required to raise more than 6.5 billion euros (8.7 billion dollars) by the end of May and is currently suffering from high borrowing rates which it says are "unbearable." On Wednesday Greece raised 1.56 billion euros in a treasury bill auction, with investors enthusiastically snapping up Greek short-term securities but at high rates. The debt sale follows a pledge by European Union leaders over the weekend for a 30-billion-euro rescue plan intended to raise Athens' credibility on the markets, reduce risk and cut the rate demanded. "Tapping into the rescue program is not our first choice...but if we feel it is necessary the we will use it based on interest rates," said Papaconstantinou, adding that he was certain all the countries in the eurozone, including Germany, would give the necessary backing for the loan plan if needed. The Socialist government is implementing a strict austerity program to reduce the public debt from 12.9 per cent of GDP last year by four percentage points this year. The measures, announced in March, foresee cutting public sector pay, freezing pensions and increasing taxes. The government also plans to overhaul the income tax and pension system. But the plan has faced opposition from unions which have launched a series of strikes. More than 10,000 taxi drivers demonstrated in central Athens against a tax reform bill approved in parliament on Wednesday. Lawyers were also on the second of a three-day strike against the bill which reforms taxation and self-employed professionals. Outdoor market vendors also protested outside the economy ministry in the city center for being forced to use cash registers. On Thursday, public transport workers, excluding workers on the underground metro, are to hold work stoppages for six hours along with secondary school teachers. Civil servants have also said they will walk off the job for 24 hours on April 22, the fourth this year against cutbacks and pension reforms.

Crisis forces Greece to "hold breath until May"

"Hopefully getting through the month of May will mean that market attention will finally be taken off of Greece," Papanconstantinou told Greek state television NET.

Greece will be required to raise more than 6.5 billion euros (8.7 billion dollars) by the end of May and is currently suffering from high borrowing rates which it says are "unbearable."

On Wednesday Greece raised 1.56 billion euros in a treasury bill auction, with investors enthusiastically snapping up Greek short-term securities but at high rates.

The debt sale follows a pledge by European Union leaders over the weekend for a 30-billion-euro rescue plan intended to raise Athens' credibility on the markets, reduce risk and cut the rate demanded.

"Tapping into the rescue program is not our first choice...but if we feel it is necessary the we will use it based on interest rates," said Papaconstantinou, adding that he was certain all the countries in the eurozone, including Germany, would give the necessary backing for the loan plan if needed.

The Socialist government is implementing a strict austerity program to reduce the public debt from 12.9 per cent of GDP last year by four percentage points this year. The measures, announced in March, foresee cutting public sector pay, freezing pensions and increasing taxes.

The government also plans to overhaul the income tax and pension system.

But the plan has faced opposition from unions which have launched a series of strikes. More than 10,000 taxi drivers demonstrated in central Athens against a tax reform bill approved in parliament on Wednesday.

Lawyers were also on the second of a three-day strike against the bill which reforms taxation and self-employed professionals. Outdoor market vendors also protested outside the economy ministry in the city center for being forced to use cash registers.

On Thursday, public transport workers, excluding workers on the underground metro, are to hold work stoppages for six hours along with secondary school teachers.

Civil servants have also said they will walk off the job for 24 hours on April 22, the fourth this year against cutbacks and pension reforms.