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Prime minister insists Greece will repay all its loans as borrowing costs rise to new record
By Associated Press, Updated: Friday, May 20, 2:39 PM
ATHENS, Greece — Greece’s prime minister says the country will repay all its loans.
Many have said the sheer size of Greece’s debt means the country cannot avoid eventually restructuring its debt — paying creditors later or less than the full amount owed. But the European Central Bank opposes the idea.
Prime Minister George Papandreou, whose country is relying on a €110 billion ($157 billion) bailout package to save it from bankruptcy, said Friday that “we will pay back the loans.”
Greek borrowing costs spiked to record highs Friday, with interest rates on 10-year bonds reaching more than 16.5 percent.
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