Greece fiscal woes persist...euro falls vs dollar

The euro common currency took a beating and slipped to a one-week low against the dollar as concerns over Greece refused to subside amid lack of cohesion in the European Union (EU). The nation now may resort to aid from the IMF. About €20bn (US$27bn) of Greek debt becomes due in the next two months. Greece warned that it will have to tap the IMF for help if the EU can't agree next week to a plan of attack that will help it cut its borrowing rates. Greece has already implemented so-called austerity measures to cut back some of its debt, but they are being countered by rising borrowing rates, as lenders fear that Greece will ultimately default on its debt. Greek government still needs to raise another 10 billion euros to repay bonds maturing on April 20 and May 19. It is currently trying to tackle its debt burden.

Greek Prime Minister George Papandreou called on EU leaders next week to agree to a package of standby loans, according to reports. Reports quoted European Commission President Jose Manuel Barroso as saying that euro-zone countries, including Germany, are prepared to extend aid to Greece if asked. The Wall Street Journal reported that Germany has signaled that it is open to a joint bailout by European governments and the IMF if needed. So far Greece has not asked for financial support, Barroso said, noting that earlier this week he had a meeting with Greek Prime Minister Papandreou.