Greece's prime minister insists the country is not heading for default, despite a continued increase in the national debt and renewed warnings from ratings agencies.George Papandreou, speaking before a crucial budget vote, insisted his Socialist government's drastic austerity measures would stabilize public finances — helped by an international bailout loan package worth €110 billion ($144 billion).Lawmakers began voting late Wednesday on the 2011 budget, which would trim another €5 billion off the country's budget deficit despite a third year of recession.Greece's debt-to-GDP ratio is set to exceed 150 percent in 2011, from 127 percent in 2009.
(photo credit: The Jerusalem Post)