Greeks worry about Dubai fallout

By Incorrect Author 1 December 2009

Greece is working to correct a "lack of credibility" in its financial markets, as concern grows about its ability to pay debts rattled by Dubai's financial problems. The government is working to reduce the country’s substantial budget deficit and government debt, estimated at 12.7% of GDP and above 110% of GDP respectively, and hopes it won’t need an EU bailout. Markets are concerned about the vulnerability of Greek government bonds following Dubai's recent statement that it would not guarantee troubled property firm Dubai World's debt. Greek finance minister George Papaconstantinou, says the cost of Greek government debt and the cost of insuring it had risen. It’s called contagion. Read more: BBC