27 Dec 2009

Greece seeks to cut debt

8:21 am on 27 December 2009

Greece has outlined spending cuts to reduce the country's 300bn euro debt.

Greece has adopted big budget cuts designed to lower the country's high levels of debt, which had led the three main international credit rating agencies to downgrade its government bonds.

The BBC reports the Greek government adopted measures to cut public spending and boost revenue, in order to shrink public debt to 9.1% of overall economic output next year, down from 12.7% this year.

The high debt level had led three international credit rating agencies to downgrade Greek government bonds.

Prime Minister George Papandreou outlined a number of measures, including a 10% cut in social security spending, a cut in defence spending and pay and hiring freezes for public sector workers.

He also announced a 90% tax on the bonuses of senior bank workers.