Bond deal close in Greece but deficit target missed

Tim Wallace
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GREECE is in the “final stage” of negotiations with private bond-holders on the debt swap which should pave the way for a second bailout, according to European Commissioner Olli Rehn.

An agreement will be reached “in the coming weeks,” with the vital cash coming shortly after.

Despite lying about its finances to join the single currency, Rehn confirmed he believes that “Greece will be remain a member of the euro.”

Greece confirmed yesterday that its budget deficit was likely to hit 9.6 per cent of GDP in 2011, down from 10.6 per cent in 2010 but still firmly above its nine per cent target.