Creditors spell out further Greece austerity

AP News
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Posted: Feb 14, 2012 6:23 AM
Creditors spell out further Greece austerity

A new document from Greece's international creditors spells out what further austerity measures they expect Athens to implement to receive fresh cash and avoid default.

The draft document obtained by the Associated Press Tuesday says, among other conditions, that the Greek government must cut spending on pharmaceutical products by another euro1 billion ($1.32 billion) and step up its privatization efforts to create more revenues.

Greece's international creditors _ the International Monetary Fund, the European Central Bank and the European Union _ also are demanding that the country slash its defense budget by another euro300 million.

The document comes ahead of a crucial meeting of the 17-nation eurozone's finance ministers in Brussels Wednesday.