Greece requests access to EU rescue loan

Greece has sent a formal request for its 45bn euro EU-IMF debt rescue package to be activated as its financial predicament worsens.

Prime Minister George Papandreou's decision to utilise the debt package follows a double whammy of bad news for the nation yesterday as ratings agency Moody's cut its credit rating and data showed its deficit now stands at 13.6% of GDP. The heavily-indebted nation has now issued a formal request to access the 45bn euro loan package - made up of 30bn euros from the EU and 15bn euros from the IMF - as the cost of its borrowing soared. Greece is now paying approximately twice as much as Munich to issue 10-year bonds. Its proposal to activate the loan facility will have to be approved by ...