Greece Wants Better Deal From Creditors To Avoid Default

October 11 00:00 2011

New York, October 11 ( – The Greek government has conducted talks with representatives from the International Monetary Fund (IMF) and the European Union (EU) in a bid to secure better deal to avoid default. The Greek government is in dire straits and needs help on an urgent basis. However, it also has to ensure that the help taken this time does not become the cause of another problem. Hence, the effort to secure better terms by the Greek government.

The Greek government has an outstanding debt of 350 billion euros. The forthcoming interest payments in 2012 amount to 17.9 billion euros. The Greek government is a near socialist state with 1 out of every 10 Greeks working in a government job. This creates huge obligations towards the salary payments as well.

The Greek kitty has just 8 billion Euros. Estimates say that by mid-November, the Greek government will run out of cash and there will be the catastrophic default the world has been watching out for.

However, the Greek Finance Minister is trying to avoid this situation by borrowing more money just to keep the economy afloat. Many creditors think this is throwing good money after bad. However, efforts are on to secure a deal that could get both Greece as well as Europe out of this mess.