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Greek Debt Crisis Worsens As EU Revises Figures

IMF and EU officials leave the Greek Finance Ministry amid talks on a bailout deal.
International financial markets reacted negatively today after the European Union revised Greece's deficit and debt figures upward.

The EU's statistics agency Eurostat said the country's budget deficit in 2009 stood at 13.6 percent of gross domestic product rather than the previously predicted 12.7 percent.

The level is more than four times the EU limit set for the 16 countries that use the euro currency.

Ratings agency Moody's reacted by downgrading its rating on Greece's debt by one notch to A3 from A2, and warned that further downgrades were likely.

Moody's downgrade was likely to make it even more difficult for Greece to borrow money rather than accept a joint EU-IMF rescue package.

The euro fell for a sixth consecutive session today, while U.S. stocks also felt the impact of the Greek crisis, with the Dow Jones industrial index falling around 70 points in early trading.

Compiled from agency reports