19 Jun 2011

Help Greece, Merkel urges private creditors

3:00 pm on 19 June 2011

German Chancellor Angela Merkel has called on private creditors to help alleviate Greece's debt crisis amid continuing protests in Athens.

Mrs Merkel says a new bailout package for Greece should involve "substantial" input from private banks.

Greece needs a loan of 12 billion euros ($21 billion) to avoid defaulting on debts due for repayment in the next few months, but that loan is dependent on the implementation of painful domestic reforms.

Prime Minister George Papandreou has reshuffled his cabinet in an attempt to restore political stability reports the BBC.

His plans for tax increases, pension cuts and privatisations have sparked nationwide strikes and ugly riots on the streets of Athens.

Thousands marched on the Greek parliament on Saturday to show their continued anger over the belt-tightening campaign.

The European Union's top financial official, Olli Rehn, has indicated that Greece will get its next round of funds in July if Mr Papandreou's government can push through the reforms.