Greek borrowing hits record high

The Greek government’s cost of
borrowing hit a new record high following delays to Greece’s economic recovery
plans.

The interest rate charged by
investors for ten-year bonds hit 7.6 per cent the highest since the euro was
introduced.

European officials were due to meet
in Athens earlier to agree the terms of a debt rescue package for Greece.

But the widespread disruption to
flights has delayed the meeting until Wednesday.

The interest rate charged to Greece
compares with a rate of 3 per cent charged to Germany – regarded as the safest
economy to lend to in the European Union.

Greece is still struggling with
billions of euros of debt, and has been forced to agree a rescue deal with the
EU and the International Monetary Fund (IMF).

The deal, already agreed in
principle, is designed to provide an alternative source of borrowing for
Greece, should the bond markets continue to be too expensive.

Details of the plan, including the
rate of interest Greece will have to pay, have yet to be finalised however.

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