Greece asks Obama to impose tougher rules on hedge funds

10 March 2010

Greek prime minister George Papandreou has called on US president Barack Obama to introduce tougher regulation on currency traders and hedge funds.

The European country is currently in the midst of a financial crisis which has seen three packages of cuts passed in the past three months by the government.

Last week, further debt-cutting measures were introduced including pay cuts for citizens working in the public sector, as well as tax rises on goods such as fuel.

Mr Papandreou has stated that hedge funds are making the economic situation worse in Greece by betting on the country defaulting on its debts.

"Europe and America must say 'enough is enough' to those speculators who only place value on immediate returns, with utter disregard for the consequences on the larger economic system," he stated.

Last month, Fitch Ratings downgraded the credit rating of four top Greek banks in response to the growing crisis.

By Tony Aynsley

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