Afternoon:
9°c
Greece defends Goldman Sachs debt deal to EU
19 Feb 2010Greece today said a debt deal with Goldman Sachs which came under scrutiny from the European Union was above board.
The Greek government was asked to explain how it used currency swaps and how that affected debt figures. A spokesman said it would be explained by Greece's finance minister in a letter to the EU.
The country's prime minister, George Papandreou, today said Greece had to borrow at the same interest rates as the rest of the eurozone, warning that higher borrowing costs would drive up interest rates elsewhere in Europe.
Mr Papandreou, addressing a conference in London, said he was taking action to address Greece's debt crisis and was not looking for a bailout.
"Higher interest rates for us mean higher interest rates for those in Europe. It is a fallacy to say the Greeks are reckless because it would just mean the problem is a problem of DNA."
He also warned that Greece was not the only country facing fiscal difficulties: "There is a fear of contagion."
Reader views (2)
I feel sorry for the Germans, Greece will ask for money and then Portugal and Spain will follow. When will Germany wake up that the EU needs reform above all the CAP (Common Agriculture Policy) and more transparency. The EU needs to much tougher with Credit Rating Agencies and Investment Banks, when they themselves do not always understand the complex products they are selling.
- Andrew, London, 21/02/2010 19:58
Report abuse
Goldman Sachs should be beware of Greeks bearing gifts, to be economic with the truth. Both institutions have been damaged by this process and I feel sorry for the Germans who are facing a big bill. A central problem of this global financial crisis is complex financial products that have hidden the truth.
- Andrew, London, 19/02/2010 23:34
Report abuse
