Greece dismissed talk of a bailout from Europe after an ambitious plan to solve the worst debt crisis in the country's modern history failed to convince EU officials and investors. "It hasn't been a question of a bailout," Greek Finance Minister George Papaconstantinou said in Paris after talks with his French and German counterparts. "We haven't discussed this with my colleagues." EU partners thought Greece was heading "in the right direction", he added.
Papandreou warned that Greece "faces the risk of sinking" under its 300 billion euros' (442 dollars') worth of debt and had "lost every trace of credibility" after fresh doubts about its official statistics. Greece's public deficit is likely to rise to 12.7 percent of output this year -- far exceeding the eurozone limit of 3.0 percent.
Analysts at Bank of America Merrill Lynch said in a note that "despite its travails, Greece is not likely to default on its debt. "But pressure probably will remain intense until the new administration can prove to the market that it is committed to cutting public spending."
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