Eurozone finance ministers to seek agreement to help Greek cashflow
Baku, October 3 (AZERTAC). Eurozone finance ministers will seek agreement on Monday on unlocking vital loan aid for Greece, after a warning from Athens that it will miss budget deficit targets sent markets tumbling in Asian trade.
The 17 countries that share the debt-challenged euro currency will meet in Luxembourg from 1500 GMT, seeking evidence on whether Greece should receive an eight-billion-euro tranche of loans, blocked by the IMF for the past month.
International auditors spent the weekend trying to obtain the most accurate picture of Greece`s finances and forecasts, after protests including staff occupations of ministries slowed the resumption of negotiations.
The Athens government did nothing to improve the mood of investors when it announced Sunday that the budget deficit should drop to 8.5 per cent of GDP in 2011 from 10.5 per cent last year, short of an earlier 7.4-per cent target.
In 2012, Greece expects a further reduction of public deficits, setting the target to 6.8 per cent of gross domestic product, instead of the 6.5 per cent originally forecast.
The deficit target is linked to a bailout package that Greece needs to avoid running out of cash. The government says it needs the loans to pay salary and other bills this month.
Asian markets were the first open to react to the news which heightened fears over the prospect of a devastating debt default, and reinforced concerns over eurozone policymakers` ability to surmount the debt crisis.
Japanese stocks plunged 2.26 per cent by the break while the euro fell against major counterparts.
Hong Kong lost 4.95 per cent by the break, while Sydney was off 2.12 per cent. Singapore was down 1.79 per cent and Taipei slipped 1.69 per cent. Markets in South Korea and China were closed.
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