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Greece sighs at prospect of debt relief

Tuesday, May 10, 2016 - 01:45

Greece's 10-year bond yields fall below 8 percent for the first time in over six months after euro zone finance ministers offered debt relief to the country from 2018. Joel Flynn reports.

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Relief might be one word for it. After six years of talks, finally some signs that euro zone ministers could help ease Greece's debt burden. SOUNDBITE: Eurogroup Chief, Jeroen Dijsselbloem, saying (English): "Not across the board, not every year, but my assumption would be that there will be a problem of debt sustainability that we need to address. Where it is, how big it is, when we need to address it, how we can address it, we will discuss in detail next Eurogroup." Pleasing news in Athens and elsewhere - Greek bond yields dropping below 8 percent for the first time in six months. Stocks too rising in the wake of the euro zone meeting. But, say some, with debt still at 180 percent of GDP, talk is cheap. SOUNDBITE: CMC Markets analyst, Michael Hewson, saying (English): "The Greek economy is not growing - we've seen data out this morning - industrial production fell 4 percent year on year. The economy is still in deflation and the longer that EU leaders ignore this problem of proper debt relief, as called for by the IMF, the longer we will continue to have this debate." Germany had been opposed to any signs of debt relief, but the IMF said it was crucial. While this latest step is a compromise though, not everyone is happy. SOUNDBITE: Pensioner, Vasilis, saying (Greek): "I have no trust at all in the Europeans and the lenders, but there was no other solution." SOUNDBITE: Small Business Owner, Giorgos Moraitakis, saying (Greek): "There are measures galore, and I'm sure they'll keep on making them, but there will be no debt relief and working people will be the ones burdened the most." Another 5 billion euros of bailout money is set to be unlocked for Greece next. That will be welcomed by the government. But in the wake of the weekend's violent protests, planned wage and pension cuts only look likely to divide the country even further.

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Greece sighs at prospect of debt relief

Tuesday, May 10, 2016 - 01:45