Monday, May 30, 2011

ECB official: New Greek aid under study

Associated Press
May 30, 2011

Greece could get another euro20 billion ($28 billion) in aid from its fellow euro countries and raise three times that through new austerity measures such as selling government property, a top European Central Bank official says.

Lorenzo Bini Smaghi, a member of the ECB's executive board, is quoted by the Financial Times as saying Greece needs between euro60 billion and euro70 billion through next year.

That gap could be filled in several ways, Bini Smaghi said, giving a rough sketch of a plan for additional assistance that was split between government and private-sector contributions.

The private sector money would come partly from selling government property as well as rolled-over investments from Greek banks and issuance of short-term government debt.


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