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Greece agrees to new spending cuts

  • Greek leaders have agreed to nearly $14 billion in new spending cuts required to keep its EU/IMF bailout.

    The cuts are necessary in order for Greece to qualify for the next $38.5 billion instalment of a $159 billion loan.

    Without the funds, Greece faces bankruptcy and would probably be forced to leave the eurozone.

    Prime Minister Antonis Samaras has maintained that Greece must build up its credibility before it can ask international creditors for an extension to its 2013-14 austerity deadline.

    The austerity measures are expected to include further reductions in state benefits and pensions.