Greece Debt, Europe Debt | featured news

A credit agency warning that Greece could face default if it follows an international plan designed to help the country cope with its massive debts caused Asian markets to stall Tuesday.

The rating agency said a plan proposed by the French government and banks to roll over some debt could fall within the definition of default.

Thousands of South Asian migrants have left Greece in recent months to escape the country's growing economic crisis, community leaders tell the BBC.

Greece's lawmakers approved a key austerity bill Wednesday needed to avert default next month, despite a second day of rioting on the streets of Athens that left dozens of police and protesters injured.

Riot police fired tear gas at youths hurling rocks and petrol bombs near the Greek finance ministry Tuesday, trying to quell the anger unleashed during mass protests and a general strike as parliament debated new cost-cutting measures.

Under the plan, French banks would give Athens more time to pay back loans as they come due over the next three years.

Greece has secured a second bailout from the European Union and the International Monetary Fund, and it too will be on the order of €110 billion, Prime Minister George Papandreou said.

The crown jewels of Greece’s socialist state are now likely to go to the highest bidder.

Unlike their government, Greek banks were seen as well-managed and prudent before the crisis. Now they are struggling to find funding.

Hours of talks between eurozone finance ministers on the imploding finances of Greece broke up early Monday morning without the ministers signing off on a vital installment of rescue loans needed to avoid bankruptcy next month.