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Greek markets hit by political turmoil

Friday, June 21, 2013 - 01:47

June.21 - The smallest party in Greece's ruling coalition has pulled out of government, after a row over the abrupt closure of the state broadcaster. Kirsty Basset reports.

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Greece has been plunged into fresh turmoil. The Democratic Left party has confirmed it will pull its ministers from Greece's three party ruling coalition - after talks to resume state television broadcasts collapsed. Party member Antonis Manitakis. (SOUNDBITE) (Greek) DEMOCRATIC LEFT PARTY MEMBER AND PUBLIC ADMINISTRATION MINISTER IN THE GOVERNMENT ANTONIS MANITAKIS SAYING: "After the decision by Democratic Left to withdraw from the government coalition and to withdraw its ministers I will submit my resignation to the prime minister today." As party members arrived for emergency talks on Friday morning, Greeks expressed shock. (SOUNDBITE) (Greek) ATHENS RESIDENT VASSILIKI PANOUSI, A HOMEMAKER, SAYING: "Of course I am concerned. I really don't know what would be best right now, whether to go to elections or not, which is not the best solution. The best thing would be for them to co-operate and achieve something." The development has also rattled investors. Greece's borrowing costs rose, as ten year government bonds hit their highest level since April. And stocks tumbled 4 percent. It coincides with fresh concern about a potential funding shortfall in Greece's bailout program. That was brushed aside by Eurogroup President Jeroen Dijsselbloem. (SOUNDBITE) (English) EUROGROUP PRESIDENT, JEROEN DIJSSELBLOEM, SAYING: "We have discussed the state of play on the Greek programme, also on the financing and we once again concluded that the financing is guaranteed for into another year. Further disbursement will be decided on the basis of the review to be finalised in July." Snap elections - which would derail the bailout program - have been ruled out for now. But the Democratic Left is still undecided as to whether it will support the government in parliament.

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Greek markets hit by political turmoil

Friday, June 21, 2013 - 01:47