Greece calls on EU-IMF for financial bail-out

Greece has officially called on the help of the EU & IMF to help the country out financially, as it struggles to regain its footing after the recession. It has sent a letter to the European Commission, the European Central Bank and the Eurogroup representing other Eurozone countries "formally requesting the activation of the support mechanism".

The debt ridden country had hoped previous promises of EU support would help to put confidence back in its markets and aid its recovery but it was not enough and they have had to ask the International Monetary Fund for further loans.

A deal was agreed with IMF that possible loans of up to 30bn Euros ($40bn; £26bn) in the first year, and perhaps extending to a further 10bn euro’s.

However, such a large bailout poses the problem that the country may not pay the debt back, as Iceland refused to, especially if it exceeds its estimate.

During the recession 85% of Iceland’s banking system collapsed making their currency, the Kronor, almost worthless.

After a large financial bailout they refused to pay the debt back, debt that was the equivalent of $62,000 per household
Germany has also made public its opposition to a bail out.

Chancellor Angela Merkel said:

"Only when these [necessary steps] have been completed, can we talk about concrete assistance, including what kind of aid and how much,"

Greek Prime Minister George Papandreou said

"I have asked our partners to contribute decisively in order to give Greece a safe harbor,"

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