AUTHOR javno165
FOTO: Archive


JUNE 21 2010 16:45h

Twinned debt sufferers Greece, Argentina in tinned peach row

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Greece and Argentina, sharing grief over debt woes nearly a decade apart, opened a row over tinned fruit Monday after Buenos Aires scrapped peach imports worth 2.4 million dollars (1.9 million euros).

Desperate for revenue in the middle of a national debt crisis, Athens told the Argentine ambassador that the order cancellation was a serious blow to struggling Greek producers and that the issue needed to be resolved quickly.

"In a period of crisis, the survival of producers is at stake," deputy Greek foreign minister Spyros Kouvelis told Argentine ambassador Jorge Alejandro Mastropietro, according to the foreign ministry.

AFP-.--.-Greek Finance Minister George Papaconstantinou gives a press conference in Athens on May 2, 2010. Prime Minister George Papandreou warned Greece Sunday to prepare for major sacrifices after his government agreed to don a financial straitjacket in exchange for an unprecedented international bailout."The Greek government expects gestures of support from a friendly state such as Argentina," the finance ministry said in a statement. "Such a gesture is in any case based on existing international accords and agreements."

Agricultural produce forms the backbone of Greek exports.

Athens is burdened by a debt mountain approaching 300 billion euros (372 billion dollars) and is battling to avoid a default nearly a decade after Argentina went through its own financial meltdown.

Greece recently averted default thanks to a 110-billion-euro loan extended by the European Union and the International Monetary Fund, but at the cost of sharp austerity cuts which have caused a series of general strikes and protests.

Last month, Argentine President Cristina Kirchner said the turmoil gripping Greece parallels the upheaval Argentina went through days before its sovereign debt default nearly a decade ago.

In 2001, Argentina was beset by widespread protests and riots over austerity measures imposed by the IMF as Buenos Aires grappled with its own debt woes.

A debt default later declared by the government was the largest in history at some 90 billion dollars.