Greece eases debt pressure with bailout billions

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Finance ministry sources said the government redeemed 8.5 billion (£7.3 billion) in expiring 10-year state bonds, which it was unable to raise without outside assistance as wary investors have sent Greek borrowing costs sky-high.

A day earlier the country had received 14.5 billion (£12.5 billion) from 10 of the other 15 eurozone countries. The loans are part of a 110 billion (£94.5 billion) joint EU and International Monetary Fund rescue package.

Greece's debt crisis continues to send shockwaves through global markets and, with fears for Europe's struggling economy and German warnings that the future of the euro was at stake, sent the common currency to a four-year low against the dollar today.

Athens received its first 5.5 billion from the IMF last week, and the second and final instalment for this year - an estimated 18 billion (£15.5 billion) - is expected in the autumn.

Prime Minister George Papandreou said the bailout earned Greece, whose public finances lie in tatters after years of state overspending, waste and tax evasion, time to sort itself out fiscally.

"This ... gives us this opportunity to breathe and to take the big initiatives for institutional changes in our economy and in the structure of our state itself," he said.

To secure the foreign loans, his government has cut pensions and civil service pay, while raising consumer taxes, increasing retirement ages and pledging to fight corruption and tax cheats.

"These changes need to be made, but they must be made with the citizen and not against the citizen," Papandreou said.

"We are going towards a model of sustainable development, using the wealth that our country possesses, investing in new technologies, in new products, in order to ensure that we emerge from the crisis as quickly as possible, in the least painful possible way for our citizens."

Another general strike against the austerity measures planned tomorrow will shut all public services and disrupt public transport.

Schools will close, state hospitals will function on emergency staff, and all ferries will remain in port. However, air traffic controllers will stay on the job, leaving the country's airports open.