The International Monetary Fund is poised to raise its share of Greece's financial rescue package by €10bn ($13.2bn) amid fears that the planned €45bn bail-out will fail to prevent the country's debt crisis from spiralling out of control.
Stock markets in Europe tumbled yesterday, with leading indices suffering their heaviest falls of the year, after Standard & Poors cut Greece's long-term credit rating to junk status.
Shares in Athens fell 6 per cent as banks plunged more than 9 per cent. Greek government bonds suffered further heavy falls on growing concern that the country may need to restructure its debts in spite of the proposed eurozone and IMF rescue. Portugal's stock market was down nearly 5 per cent.
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