THE countdown has begun. It is a matter of when, not if, the Greek government and creditors will have to reconcile a 50% default on their sovereign debt.

MOODY’S cut Greece’s credit rating further into junk territory yesterday and said it was almost certain to slap a default tag on its debt as a result of a new EU rescue package.

GREEK Prime Minister George Papandreou has offered to step down to make way for a national unity government, provided it supports European Union/International Monetary Fund bailout plans, Greek state sources said yesterday.