24 Sep 2011

More gloom over Greece

8:53 am on 24 September 2011

Talk of a possible Greek default has gained pace.

Finance Minister Evangelos Venizelos has been quoted by two newspapers as saying an orderly default with a 50% cut for bondholders was one of three possible scenarios for resolving the nation's fiscal woes.

However, several MPs who attended the meeting where the newspapers said Mr Venizelos made the statement, denied this was the case.

Moody's on Friday downgraded the credit ratings of eight Greek banks due to concerns about Greece's ability to repay its debts.

Two of the banks, the Emporiki Bank of Greece and General Bank of Greece, are majority-owned by Credit Agricole and Societe Generale of France.