Greece defers to pressure to request IMF/eurozone bailout

Greece bowed to international pressure last week by formally requesting a bailout from the eurozone member countries and the International Monetary Fund.

George Papaconstantinou, the Greek premier, wrote to the European Commission and the European Central Bank (ECB) last Friday officially requesting “activation of the support mechanism”. This support system is an aid package totalling e45bn (£39bn), to be given in the form of bilateral loans over a three-year period. Diego Iscaro, a senior economist at IHS Global Insight, says although the bailout was widely expected, markets will remain concerned about the long-term sustainability of the country’s finances. The cost of borrowing soared as yields on 10-year Greek government bonds cl...