Not Now

Europe May Withhold Half of Greek Loan

To force more budget cuts in debt-ridden country.

European finance ministers may authorize only $8.6 billion out of the $17.2 billion in loan to Greece, to maintain pressure on the government to slash the debt that pitched the European markets into crisis. Greece needs the lifeline to keep the country solvent before they default in July. But Belgian Finance Minister Didier Reynders said the other half of the aid might hinge on further Greek budget cuts. Meanwhile, Greek Prime Minister George Papandreou has begun a three-day parliamentary debate over a confidence vote in his effort to save his government from collapse and win parliamentary backing for spending cuts, tax increases and state-asset sales needed to keep bailout funds flowing.