Greece Requests Emergency Aid

According to The Washington Post, the Prime Minister of Greece, George Papandreou formally requested about $53 billion in financial aid from the European Union and the International Monetary Fund. Papandreou, in a letter to the European Central Bank, "asked for an emergency aid package for his debt-stricken country."

According to CNN, European finance leaders have pledged that Greece could receive nearly $40 billion at a 5 percent interest rate. The IMF is prepared to lend Greece more than $13 billion as well. 

According to CNN, Papandreou's request came a day after Eurostat, the EU's statistical authority, which said Greece's 2009 budget deficit was almost $43 billion. The deficit is equal to 13.6 percent of the country's gross domestic product, trumping the claims of Greek officials that it was 12.7 percent. 

The market situation "threatens to deconstruct, not only the sacrifices of the Greek people, but also the smooth course of the economy itself," Papandreou stated as he announced his decision to call for the aid. He maintains that he "inherited a ship that was ready to sink," referring to the way the previous administration left the Greek economy, according to The Associated Press.

The Greek bond market is likely to remain volatile for some time, as Greece goes through the "long and painful process" of getting its fiscal house in order, said CNN.

While the aid package has enough money to keep Greece from defaulting on its massive debts for the time being, Athens faces years of painful cutbacks, and its long-term finances are still being questioned.

EU spokesman Amadeu Altafaj Tardio said now that Greece has put forward a request for EU financing, the finance ministers of the 16 Eurogroup nations will likely meet "in a matter of days," instead of the 2-3 weeks initially estimated, reported CNN.

According to The Associated Press, Papandreou said, "Our partners will assist us, immediately and decisively, in order to give Greece the safe haven that will allow us to rebuild our ship with sturdy and reliable materials, as well as sending a strong message to the markets that the EU is not playing and is protecting our common interests and our common currency."