Greece to ramp up austerity measures to secure payment

GREEK Prime Minister George Papandreou’s government has said it will accelerate budget cuts, targeting civil servants’ wages and pensioners to keep emergency loans flowing and avoid default.

Measures announced late yesterday following two rounds of talks with the European Union and the International Monetary Fund include: a 20% cut in pensions of more than €1,200 a month,according to a government statement; pensions paid to those younger than 55 will be shaved by 40% for the amount exceeding €1,000 and wages will be lowered for 30,000 state employees.

The policies were demanded by international lenders to ensure that Greece reaches deficit-reduction targets in a €110 billion bailout and receives a payment due next month.