Greece has agreed the outline of a €24bn austerity package, including a three-year wage freeze for public sector workers, in return for a multibillion-euro loan from the eurozone and the International Monetary Fund, according to people familiar with the talks.
Final details of the measures, which are intended to slash the budget deficit by 10-11 percentage points of gross domestic product over the next three years, were still being worked out, a senior government official said.
Negotiations with officials from the IMF, the European Commission, and the European Central Bank are due to be completed at the weekend and the measures will be presented for approval by the Greek parliament next week, writes the FT. FULL STORY...
British banks tight-lipped on exposure to PIGS debt
Britain's leading banks are refusing to detail their exposures to the debts of the troubled economies of Greece, Portugal and Spain, although they were falling over one another to play them down.
The Bank of International Settlements has estimated the collective exposures of Britain's banks to Greece at $15bn (£10bn) Portugal at $24.2bn and Spain at an alarming $114bn, threating a fresh banking crisis if contagion from the Greek crisis spills over into other debt-ridden Eurozone economies, writes the Independent.
Barclays and HSBC declined any comment, although privately they have been playing down their exposures as "limited" and "manageable".
Lloyds Banking Group - which is 41 per cent owned by the tax payer - yesterday said it had "no material exposure to Greece or Portugal" while claiming its exposure to Spain is "limited". FULL STORY...
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