Europe, Greek Debt | featured news

China offered on Saturday to buy Greek government bonds when Athens resumes issuing, in a show of support for the country whose debt burden pushed the euro zone into crisis and required an international bailout.

Moody's Investors Service downgraded Greek debt by four notches to junk status. It follows Standard & Poor's, which put the debt-laden country in the speculative-grade camp almost seven weeks ago.

Both houses of Parliament approve unpopular financial plan to save Greece from bankruptcy.

European debt problems sent another wave of pessimism through the markets.

The move by Standard & Poor’s on Tuesday deepened Europe’s debt crisis, and investors sold off government bonds amid fears of a default.

Chancellor Angela Merkel of Germany said that Greece should solve its own problems, ahead of a summit meeting scheduled for Thursday.

BRUSSELS (Reuters) - Greece must take additional measures to reach its deficit-cut target of 4 percent of GDP in 2010 but it is not yet clear how far short Athens is with steps announced so far, the European Commission said on Tuesday.

Greece plans to issue a 10-year bond next week to coincide with the announcement of a new austerity package. Government debt markets remained under heavy pressure.

European leaders have reached a deal to provide aid to Greece, EU president Herman Van Rompuy said on Thursday, in an unprecedented move to stave off a broader crisis in the 16-nation bloc that shares the euro.

European leaders were close to agreement on measures aimed at persuading jittery investors that Greece will not be allowed to default.