Eurozone Ministers to Greece: No Bailout Payment without Spending Cuts

Posted June 21st, 2011 at 10:55 am (UTC-5)
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The government of Greek Prime Minister George Papandreou faces a vote of confidence Tuesday in the midst of strikes and protests against further austerity measures.

Mr. Papandreou is appealing to parliament to pass his package of spending cuts, tax hikes, and sale of state assets to stave off bankruptcy and default on the country's debt. Economic analysts say a default by Greece could spark another global financial disaster.

Eurozone finance ministers say Greece must institute further severe economic reforms before it can receive the next $17 billion payment loan installment from the European Union and the International Monetary Fund.

Monday, European finance ministers held off approval of the next installment of the $160 billion bailout package pending approval of further austerity measures in Greece.

However, the ministers welcomed what they called “informal voluntary” roll-overs by Greek bond holders — meaning that those who hold Greek debt would hold off demanding payment.