Greece

ATEBank will reduce its workforce by 1,000 persons, cut payouts by 10%, shut down branches and sell all its non-bank holdings as part of its restructuring plan, Capital.gr reported. The state run bank will go through a triple merger with the Loans and Consignments Fund (LCF) and the Hellenic Postbank so as to create a strong state run banking pillar. The plan includes restructuring of ATE, which must get rid of its non-bank holdings while the LCF will be cut in two. From this procedure, an SA in the form of a bank will emerge that will merge with ATEBank.

Greek deputy Prime Minster Theodoros Pangalos said on Sunday that in theory debt restructuring should not be completely disregarded for the heavily indebted nation but that deficits need to be dealt with first, Dow Jones reported. In an interview with local newspaper To Vima, later confirmed by the government, Pangalos said: "Before we reach the stage of a debt restructuring we have to finish with the deficit. But demonizing debt restructuring is wrong. Debt exists to be restructured.

The cost of insuring Greek government debt against the risk of default jumped Wednesday, underscoring investor concerns about the heavily indebted country less than two weeks ahead of a key national election, The Wall Street Journal reported. The annual cost of insuring $10 million of Greek debt for five years jumped $73,000 to $754,000 as investors continued to react to comments made earlier in the week. The cost of insurance, as measured by credit default swaps, had risen $14,000 on Tuesday.

The International Monetary Fund agrees with Greece's government that the costs of restructuring Athens' public debt load would outweigh any benefits, a top IMF official said on Wednesday, Reuters reported. "We agree with the Greek authorities and their European partners that the cost of debt restructuring far outweighs the benefits," IMF European Department Acting Director Ajai Chopra told a news conference. Chopra added that Greece's fiscal consolidation was on track but needed more work. Read more.

Wind Hellas's creditors have wrested control of the Greek telecommunications company from Egyptian entrepreneur Naguib Sawiris after agreeing to a EUR420 million cash injection, the company said in a statement Monday, Dow Jones Daily Bankruptcy Review reported. The announcement ends negotiations between creditor groups that dragged beyond last Thursday's deadline after bidders revised their offers.

Greece's deficit-reduction efforts are starting to bear fruit in the debt markets, where the nation sold a batch of short-term bills at a yield lower than a previous, similar auction, The Wall Street Journal reported. Hungary, which isn't a member of the 16-nation euro zone, also cut its funding costs at an auction Tuesday, as investors appeared increasingly confident about the government's pledge to bring the budget deficit to below 3% of gross domestic product in 2011, from this year's target of 3.8% of GDP.

Chinese Premier Wen Jiabao offered Greece a major vote of confidence on a visit to the debt-ridden European nation, saying China will continue to buy Greek bonds and announcing the creation of a $5 billion fund to help Greek shipping companies buy Chinese ships, The Wall Street Journal reported. The remarks represent some of China's most substantive support for the euro zone amid the region's debt troubles, and reflect the Asian giant's growing willingness to wield its economic clout to obtain wider international influence. Mr.

Greece’s parliament has pushed through legislation that in effect grants a tax amnesty to millions of citizens, in a move at odds with organisations overseeing the country’s bail-out, the Financial Times reported. The law will allow the government to collect about €2bn ($3bn) over the next two years, far short of an estimated backlog of unpaid taxes over the last decade of about €35bn.

Greece’s finance minister has strongly rejected the idea that Athens will be forced to restructure its debts, saying that a default would break the eurozone. On a two-day visit to London, Paris and Frankfurt to convince investors that Athens has turned a corner in its year-long economic crisis, George Papaconstantinou told the Financial Times that a Greek default would spark selling in other so-called peripheral bond markets of Portugal and Ireland. “Restructuring is not going to happen.

Motorists rushed to gas stations as Greek truck drivers started a new wave of protests Monday, declaring a work stoppage and parking hundreds of vehicles along major highways in opposition to government plans to liberalize their profession, the Associated Press reported. Separately, the country's finance minister was to head to major European financial capitals later in the week on a roadshow to reassure investors about the long-term prospects of Greece's economy, which the government is overhauling to deal with a major debt crisis.