8 Apr 2010

Greece woes mount

8:54 am on 8 April 2010

Banks in Greece have asked for further government support as the country's financial woes continue. Meanwhile, government bond yields have hit new highs.

The euro also slipped further against both the dollar and the pound as a team from the International Monetary Fund arrived in Athens for discussions with government officials.

Any assistance for Greece is to be partly provided by eurozone nations and partly by the IMF.

Leading Greek banks asked for more than 15 billion euros ($US20 billion) in government support under a 28 billion euro support scheme launched under the previous administration in 2008.

The rate for 10-year borrowing hit 7.2% at one point on Wednesday.

The BBC reports continuing high yields on Greek government debt - the interest paid to investors for lending the government money - makes it harder for the state to borrow money to fund its budget deficit.