June 3, 2011
The ratings agency Standard & Poor's (S&P) promised on Friday to take a tough line if the European Union attempts to disguise a default by Greece on its debts to save French and German banks from suffering losses.
The warning comes ahead of an announcement by Jean-Claude Juncker, head of the Euro Group finance ministers, that Athens will receive its next €12bn (£10.6bn) of bailout funds after an agreement for further spending cuts and a faster programme of state asset sell-offs.
However, the Greek prime minister, George Papandreou, is facing mounting domestic opposition to further austerity and has lobbied for concessions that include some forgiveness on loans made to Greece by EU banks.
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