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Greece to Request More Time to Implement Austerity

Greek prime minister Antonis Samaras will formally ask for the terms of the county’s aid package to be relaxed next week, the Financial Times is reporting this morning.
The FT has got hold of a document outlining Samaras’ plans for his meetings next week with Angela Merkel and François Hollande.
This shows that Samaras will insist that Greece can only recover if the pace of reform is slowed.
The proposal includes spreading cuts over the next four years (not two as currently planned), and a less pacey approach to cutting the Greek deficit (lowering it by 1.5 percentage points, not 2.5 points as under the plan agreed earlier this year.
Such a plan would be costly, though, as the FT outlines:
“According to the document, Greece would need additional funding of €20bn to support the budget as the annual deficit reduction in 2013-2014 would be smaller than planned. However, Athens is proposing to find the money without seeking help from eurozone partners.
Funds would be raised from an existing IMF loan, issues of treasury bills and, Greece hopes, a postponement in the start of repayments of its first EU-IMF loan from 2016 until 2020, when it is due to begin paying back its second bailout loan.”
(source: FT)

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