AlHijjah 29, 1433, Nov 14, 2012, SPA -- Greece remains in a deep recession as new figures Wednesday showed the economy shrank by 7.2 per cent of gross domestic product in the third quarter, according the Hellenic Statistical Authority (ELSTAT), quoted by dpa. The 7.2 per cent shrinkage was measured against the third quarter of 2011. The figure represents the deepest contraction so far this year, as the economy shrank by 6.7 per cent in the first quarter and 6.3 per cent in the second. Greece is entering its sixth year of recession as it continues to pass harsh austerity measures in exchange for bailout loans demanded by its international lenders, the European Commission, the European Central Bank and the International Monetary Fund (IMF). In a speech in Athens on Wednesday, Charles Dallara, managing director of the Institute of International Finance, said Athens should be given more lenient targets to reduce its budget deficit so that its economy can return to growth more quickly. He said the Greek government had proven "willingness to bear short-term pain for long-term gain" in passing a new package of austerity measures worth 13.5 billion euros (17.1 billion dollars). Dallara was one of the main negotiators in a private sector writedown which helped reduce the country's debt mountain by 100 billion euros earlier this year. Eurozone finance ministers on Monday granted Athens an additional two years to restore its finances, but postponed their decision on the country's next 31.5-billion-euro (40-billion-dollar) aid tranche. Greece will now have until 2016 to cut its budget deficit to within 3 per cent of gross domestic product, among other fiscal measures. Most eurozone members had ruled out more debt restructuring for Greece, said German Finance Minster Wolfgang Schaeuble, suggesting alternative solutions. The delay in Greece's bailout tranche forced Athens to borrow from the markets Tuesday by issuing short-term treasury bills to avoid bankruptcy.
