Greek bond markets rally after debt auction / Greek PM plays down cabinet dissent

Greek bond markets rallied sharply on the 10 May 2011 after a successful debt auction and reports that Europe was drawing up a fresh bail-out for Athens.

EU and Greek officials, however, denied reports that an extra €60bn would be offered to Athens to fund it through 2012 and 2013.

Separately, Greece’s prime minister brushed aside rising dissent within his cabinet as ministers join the ranks of European politicians and economists speaking out at the flagging pace of Greek economic reforms.

George Papandreou chaired an emergency cabinet meeting the 10 May 2011 as European Union and International Monetary Fund experts arrived in Athens to assess progress to meet austerity conditions tied to the 2010 €110bn financial bail-out.

ESO: Background information: S&P moves to cut Greek credit rating http://www.europeansources.info/record/sp-moves-to-cut-greek-credit-rating/

ESO: Background information: Greece may ask for fresh bail-out / European officials to revamp Greek aid http://www.europeansources.info/record/greece-may-ask-for-fresh-bail-out-european-officials-to-revamp-greek-aid/

Kathimerini, 10.5.11: Greece denies new loan deal is on its way http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_10/05/2011_390296

Deutsche Welle, 10.5.11: Europe plays waiting game as Greek financial reform examined http://www.dw-world.de/dw/article/0,,15065692,00.html

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