ATHENS: Greece government borrowing rates shot up Monday amid growing concern the country will be unable to meet upcoming repayments to the International Monetary Fund.
Interest rates on two-year bonds “a gauge of default risk ” surged to 23.5 percent, while the Athens Stock Exchange dropped was down nearly 2 percent in midday trading. Greece is trying to reach a deal with eurozone lenders that would release the final installment of its bailout plan. It needs the €7.2 billion ($8 billion) to avoid defaulting on its debts this summer.
In Spain, the country’s conservative economy minister said he was confident an agreement will be reached in the coming days. Speaking at a business breakfast Monday, Luis de Guindos said Greece an agreement was imperative given Greece’s financial difficulties. He urged Greece to present a complete and wide-ranging list of economic reforms that creditors have demanded in exchange for the loans.
