Greece blames US for snowballing debts

Greek Prime Minister George Papandreou blames the US for the country’s spiraling debt crisis
Sun, 16 May 2010 18:39:31 GMT
Greek Prime Minister George Papandreou says he is considering taking legal action against US investment banks for their alleged role in the snowballing Greek debt crisis.

Papandreou said Sunday that an investigation will be launched to examine whether the financial sector engaged in “fraud”, leading to the spiraling of Greece’s debt, the Associated Press reported.

It is predicted that Greece will exceed 140 percent of its economic output in 2012.

Papandreou rejected international skepticism about Greece’s ability to pay back loans it acquired from Germany to manage the crisis.

Some officials in Germany have expressed dissatisfaction that Greeks are taking the easy way out.

The under-pressure prime minister, however, remains steadfast in defusing the crisis.

“We are ready to make the changes … we have made our mistakes. We are living up to this responsibility. But at the same time, give us a chance,” Papandreou said.

Analysts, meanwhile, say it was clear what Papandreou should do to reclaim his credentials.

“If you want to stop speculators it’s quite easy, you actually get your economy sorted out and your debt paid down,” Justin Urquhart Stewart, director of Seven Investment Management in London, told Press TV.

By taking legal action against American investment banks the Greek government will hope it will lead “to further tightening in the rules and regulations of US banks,” Stewart said.