Greek Debt, Greek Debt Crisis | featured news

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.

Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.