Greece, Greek Debt | featured news

The International Monetary Fund on Sunday approved a 30 billion euro ($38.6 billion) loan for Greece as part of a larger European Union-led effort to help ease the country's economic crisis.

Stocks are plunging as investors give in to fears that Greece's debt problems will spread and halt the global economic recovery.

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

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 finance ministers said in a statement that Greece must show by March 16 that it is on track to cut its deficit.

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.