Thessaloniki: Greece's finance minister has angrily denied rumours the country faced possible default this weekend, as renewed uncertainty took a toll on the markets and thousands of police officers prepared for more mass protests over austerity measures.
Finance Minister Evangelos Venizelos said the rumours were an orchestrated, speculative attack against the euro — ‘a game of very bad taste.' "It is not the first time that we see an organised wave of rumours about an upcoming Greek default," he said in a statement. "Greece's fundamental choice and priority is to fully... fulfill its obligations that derive from the agreements reached between Greece and its partners."
Growing pressure
Greece is being kept fin-ancially afloat by two successive international bailout-loan deals totalling ¤219 billion (Dh1.09 trillion). Despite nearly two years of austerity measures, the country faces growing pressure from European rescue creditors after missing its ambitious deficit reduction targets so far in 2011.
The default rumours, combined with the sudden resignation of senior European Central Bank official Juergen Stark, created fresh market distress that saw yields on Greek ten-year bonds surge to 21 per cent.
The austerity measures have not gone over well with the Greek public. Spending cuts and tax hikes in Greece have spurred a rapid rise unemployment, now at record levels of more than 16 per cent, adding to the anger. Government spokesman Ilias Mosialos announced on Friday that up to 20,000 civil servants could be suspended with reduced pay for up to a year, as the Socialist government battles to slash payroll costs.
More than 5,000 police officers were despatched to Thessaloniki, where protest rallies were planned over the weekend.
