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Sunday, April 25, 2010

Papaconstantinou Tells Investors Don’t Attack Greece

(Bloomberg) -- Greek Finance Minister George Papaconstantinou told investors they will “lose their shirts” if they bet cash-strapped Greece will default, as his government moved toward securing emergency aid before debt payments come due in mid-May.

Speaking to reporters in Washington, where he’s negotiating terms for a three-year loan package with the International Monetary Fund and European governments, Papaconstantinou expressed confidence the talks will be “concluded rather soon” and said his country wouldn’t restructure its debt.

With 8.5 billion euros of Greece’s bonds maturing May 19, finance chiefs want a swift agreement amid concern any delay may trigger a further sell-off in its assets and hurt global markets. Debt totaling 115.1 percent of gross domestic product and a budget deficit of almost 14 percent have investors doubting Greece can fund itself, forcing it last week to seek a lifeline of as much as 45 billion euros ($60 billion) this year.

“The IMF, the European partners and everyone involved in the financing effort recognizes the need for speed,” IMF Managing Director Dominique Strauss-Kahn said in a statement today. “I am confident that we will conclude discussions in time to meet Greece’s needs.”

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