Greece faces fresh fears over bail–out

THE Greek government has warned that it will have to quit the euro if it fails to finalise its second €130bn (£108.4bn) international bail-out and that more austerity measures may be needed.

Government spokesman Pantelis Kapsis said negotiations with international debt monitors over the next few months would “determine everything” – including whether the country avoided national bankruptcy. The bail-out was agreed last October but Greece has to persuade its banks and investment firms to take a steep hit on the value of their holdings of Greek debt.