Monday, May 7, 2012

Greece: Biggest Party Unable To Form Coalition

The leader of the conservative New Democracy party, Antonis Samaras, says he is unable to form a coalition after the leftwing Syriza party refused to join.

It is now likely that Greece will be forced to hold repeat elections in mid-June.

And the public spending cuts agreed in return for bailouts from the EU, the IMF and European Central Bank will now be difficult to implement.

In a week's time, the new Greek government is supposed to redeem 436 million euros (£351m) of debt, held by private creditors who turned down a swap last month.

It must also recapitalise Greek banks that sustained heavy losses in that swap, which cut some 106bn euros from Greece's near- and mid-term debt of more than 350bn euros.

And Greece's previous administration had already promised its EU-IMF creditors that in June it would find another 11.5 billion euros ($9.3bn) in savings through 2014. Read More