Skip to main content
Advertising

Originally published Tuesday, October 30, 2012 at 4:16 AM

  • Share:
             
  • Comments (0)
  • Print

Greece revises debt forecasts up in draft budget

Greece's general government debt is projected to stand at 189.1 percent of gross domestic product in 2013, figures in next year's revised budget show.

The Associated Press

Most Popular Comments
Hide / Show comments
No comments have been posted to this article.
Start the conversation >

advertising

ATHENS, Greece —

Greece's general government debt is projected to stand at 189.1 percent of gross domestic product in 2013, figures in next year's revised budget show.

The budget submitted to Parliament on Wednesday shows the general government deficit is predicted at 5.2 percent of GDP, compared with 4.2 percent predicted in the preliminary draft of the budget that had been submitted at the start of the month.

Finance Minister Yannis Stournaras submitted the revised figures just before lawmakers began voting on a privatization bill that will test the country's fractious governing coalition.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

Greece's government faced a vote Wednesday on a privatization bill that will be a major test for its fractious coalition, as the finance minister submitted a draft state budget for 2013.

The bill gives the government more power to privatize public utilities. But it has faced growing dissent from lawmakers among the Socialists and Democratic Left, the two junior partners in the conservative-led coalition formed after June elections.

The country's two largest labor unions will hold a rally in the evening to protest savings measures in the budget, while journalists have walked off the job at the start of rolling 24-hour strikes to protest austerity plans that will affect their healthcare funds.

The strike pulled all television and news broadcasts off the air, while news websites were not being updated and Thursday's newspapers would not be published.

The privatization bill is among reforms required as part of Greece's international bailout agreements, under which the cash-strapped country receives billions of euros in rescue loans from other eurozone countries and the International Monetary Fund, on condition that it imposes austerity measures to reduce its runaway debt and budget deficit.

Greece has been relying on the bailout funds since May 2010. Without them, it will be unable to pay its debts or continue paying salaries and pensions, leading to a messy default that would threaten its position in the 17-nation bloc that uses the euro as its currency.

The government has been struggling for months to agree with its international creditors on a new package of austerity measures worth (EURO)13.5 billion ($17.4 billion) for 2013-14. The negotiations have also revealed cracks in the governing coalition, with the Democratic Left and the Socialists raising objections.

Prime Minister Antonis Samaras said on Tuesday that the negotiations were over. Voting on the bill has been delayed by another week, and Samaras warned of chaos if it did not pass.

The package of austerity measures is essential for Greece to receive a massive installment of bailout loans, worth euro 31 billion. Without it, Samaras has warned that the country runs out of its euro reserves on Nov. 16.

News where, when and how you want it

Email Icon


Advertising