Greece was set to outline more austerity measures on Wednesday to secure a bailout installment crucial to avoid running out of money next month, as the IMF warned that Europe’s sovereign debt crisis risks tearing a giant hole in banks’ capital.
The cabinet in Athens was meeting to consider major public sector layoffs, pay and pension cuts and tax increases sought by international lenders in return for an €8 billion rescue loan.
Greece is in the front line in the euro zone debt crisis that has also engulfed Ireland and Portugal and now threatens Italy, Spain and some of Europe’s biggest banks, risking plunging the West back into recession.
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