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"Greece is not looking for bail out"

22. February 2010. | 06:41

Source: EMportal, ANA

Greece is not looking for bailout but it needs political support to implement its Stability and Growth Plan to cut its debt levels effectively said Prime-minister G. Papandreou in an interview with BBC's Andrew Marr Show broadcast on Sunday morning.

Greece is not looking for bailout but it needs political support to implement its Stability and Growth Plan to cut its debt levels effectively said Prime-minister G. Papandreou in an interview with BBC's Andrew Marr Show broadcast on Sunday morning.

In the meantime, a delegation comprised of EU Commission, European Central Bank and the International Monetary Fund officials are flying to Athens in the next days to monitor measures for fiscal purging.

Prime-minister G. Papandreou again expressed his determination for full implementation of Stability and Growth Plan. Open remains possibility for additional measures but the government has drawn a red line on the 14th salary.

Speaking to BBC's Andrew Marr Show, Mr. Papandreou once again underlined that Greece was asking for political support and time. "Give us the time, give us the support - and I'm not talking about financial but political support - in order to show you that what we're saying is being implemented and we are credible again," he said.

"We don't have at this point a need for borrowing. Our borrowing needs are covered until mid-March. What we're saying is simply that we need the help so we can borrow at the same rate at other countries, not at the high rates that undermine the possibility for making the changes [to Greece's deficit]."

Papandreou said that despite street demonstrations against austerity measures his government has taken to tackle the debt crisis, he believed there was broad support in Greek society for painful economic reforms. "Even though there are austerity measures and they do hurt, the government has the support right now of around 50% to 60% of the population," Papandreou said.

"What we're seeing here, and I haven't seen this except during the Olympic Games in 2004, is a real sense of unity by the Greek people of wanting to make a change," he said.

"Let us together with the EU authorities, the Commission and the European Central Bank, let's sit down, let's look at how our progress is doing, how we're doing in the stability and growth plan that we have tabled," he added. "We're on target, beyond target on January statistics so we're doing well. If we do need extra measures, we will take extra measures in order to reduce our deficit this year by 4% in 2010. We're ready to do so if necessary," concluded the Prime-minister.

Determined for Tough Reforms

In an interview with German magazine Der Spiegel, which is out on Monday, Mr. Papandreou emerges determined to implement tough economic reforms, stressing that measures are painful but they concern the country's survival.

Papandreou said his government has "wide support" in Greece for its austerity plans and referring to strike mobilizations underlined that trade unions know it. He expressed certainty that combat of corruption would significantly contribute to cut deficit down. He repeated Greece needs political support to enable it to borrow money at the same interest rate as other countries.

Meanwhile, the German magazine, quoting German Finance Ministry source, says it has drafted a plan for eurozone countries to provide Greece with aid worth up to 25bn euros in the form of loans or guarantees. Der Spiegel said each country would pay according to its proportion of capital in the European Central Bank. However a German finance ministry spokesman "completely rejected" the speculation.

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