Euro zone weighs new Greek aid as numbers deteriorate

Source: Reuters

(Reuters) - Euro zone finance ministers conferred on how to keep Greece afloat as negotiations between Athens and its foreign lenders neared conclusion over reforms the country must implement to receive fresh emergency loans.

Greece needs to push through spending cuts and tax measures worth 13.5 billion euros (10.8 billion pounds) as well as a raft of economic reforms to appease EU and IMF lenders and secure bailout money to avoid bankruptcy.

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The ministers received more bad news just before their Wednesday conference call when Athens more than halved its forecast for a budget surplus before debt servicing costs next year, dimming one of its few bright spots as rounds of austerity deepen a recession already into its fifth year.

Athens forecast a 4.5 percent economic contraction in 2013, which will push its public debt pile to a record 189.1 percent of gross domestic product. The primary budget surplus is forecast to be just 0.4 percent, well down on the 1.1 percent pencilled in previously.



Read more: http://uk.reuters.com/article/2012/10/31/uk-eurozone-greece-idUKBRE89U0P420121031