Press Trust of India, April 29, 2010 (Athens)
Greece came under intense pressure today to cut spending and raise taxes in return for a giant international bailout, as the markets drew breath after some head-spinning plunges.
A top European Union official said negotiations on emergency loans to prevent a Greek default were nearly complete amid growing fears that the debt crisis could spread to other heavily-indebted parts of Europe.
New signs that Germany could back the bailout helped global stocks and the euro stabilise after days of losses caused by the demotion of Greek debt to "junk" status and the downgrading of Portugal and Spain's credit rating.
Greek shares jumped 7.14 per cent by the close of trading and the interest rate that Greece has to pay to sell new debt fell back to below 10 per cent, although yields on a two-year bond were still high at more than 12 per cent.
US President Barack Obama and German Chancellor Angela Merkel earlier called for resolute action by Greece to control spending, as officials warned that the Greek drama could spark a wider global conflagration.
Greece has asked the EU and the International Monetary Fund to activate a three-year rescue package worth 45 billion euros (USD 60 billion) this year alone as it faces a May 19 default deadline to secure new funds.
Following talks with IMF chief Dominique Strauss-Kahn, two German lawmakers said the total loans could run up to 120 billion euros over three years.
A top European Union official said negotiations on emergency loans to prevent a Greek default were nearly complete amid growing fears that the debt crisis could spread to other heavily-indebted parts of Europe.
New signs that Germany could back the bailout helped global stocks and the euro stabilise after days of losses caused by the demotion of Greek debt to "junk" status and the downgrading of Portugal and Spain's credit rating.
Greek shares jumped 7.14 per cent by the close of trading and the interest rate that Greece has to pay to sell new debt fell back to below 10 per cent, although yields on a two-year bond were still high at more than 12 per cent.
US President Barack Obama and German Chancellor Angela Merkel earlier called for resolute action by Greece to control spending, as officials warned that the Greek drama could spark a wider global conflagration.
Greece has asked the EU and the International Monetary Fund to activate a three-year rescue package worth 45 billion euros (USD 60 billion) this year alone as it faces a May 19 default deadline to secure new funds.
Following talks with IMF chief Dominique Strauss-Kahn, two German lawmakers said the total loans could run up to 120 billion euros over three years.
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