Awwal 16, 1432 H/April 20, 2011, SPA -- Greece's Finance Minister said the crisis-hit country can deal with its mountain of debt and insisted that renewed access to bond markets is still possible in 2012 despite spiraling borrowing costs, AP reported. «I believe that Greece's debt is absolutely sustainable ... But that is based on the implementation of the (2011-2015) adjustment program,» he said Wednesday. Papaconstantinou spoke as the country's borrowing costs remained high on speculation that Greece will have to restructure its debts. The difference between the interest rates on Greek and German ten-year bonds is over 11 percentage points, a staggering difference given the two countries use the same currency and operate in the same interest rate regime. The Greek government has repeatedly denied it is considering such a move and has promised to forge ahead with an ambitious privatization program worth ¤50 billion ($71.5 billion) through 2015 that has already run into strong union opposition. Union are planning a general strike on May 11, while a powerful electricity workers' union warned Wednesday it was considering rolling strikes ahead of that date. Papaconstantinou again denied that restructuring is on the cards. «It is a very interesting debate but we don't care to join in,» he said. «(Restructuring) would carry great dangers for the economy, (pension) funds and households.» The spike in Greek borrowing rates, he argued, was due to a «cacophony» of conflicting statements by European finance officials on the restructuring issues. High borrowing costs have locked Greece out of bond markets.
