Greece will adopts tightening policy, implying growth of risk

The Greek government is engaged in making tightening policy to reduce further the deficit, in order to get emergency aid from <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Germany. Meanwhile great concerns still exist about the expansion of Greece crisis, as IMF’s report on March 1 presenting the worries of the debt crisis could affect many countries other than European area.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Report says euro zone officials are now making up a plan to offer Greece 25 billion euro when needed, in which German banks might purchase Greece bonds to make up for  money shortage by Greek government.

Experts say the attitude committed this week will determine the progress of Greek debt crisis, “it’s clear in the coming months Greece will experience more financing stress, so it will take out convincing measures to meet Merkel.”

Recently EU officials with ECB and IMF have urged Greece to carry out fiscal reform, for in 2009, Greek deficit was as high as 12.7 percent against its GDP, while public debt standing 113 percent, far exceeding that of EU standard of 3 and 60 percent respectively.

Greek government will issue on 3 the newly planned tightening policy in amount of 4 billion euro, attempting to reduce deficit by 4 percentage points. Some official says the Greek securities ruler is set to release ten-year bond to collect 3-5 billion euro and the issuance will effect a few days after the tightening policy.