Greece may get bridge loan before activating aid - source

ATHENS, April 22 | Thu Apr 22, 2010 10:37am EDT

ATHENS, April 22 (Reuters) - Greece may get a short-term bridge loan from European countries before an EU/IMF aid mechanism is activated, a senior Greek government source said on Thursday as the country's borrowing costs hit fresh record highs.

"There is a provision that there may be short-term loans until the mechanism is activated. This is theoretical, there is no decision or such need," the government source told reporters.

The official said that Greece was maintaining its target to cut its budget deficit to 8.7 percent of GDP this year after the EU's statistics office revised upwards the country's 2009 deficit to at least 13.6 percent of GDP from 12.7 percent. (Reporting by Harry Papachristou; Writing by Ingrid Melander)

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