Politics
Out of context: Reply #10673
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Greece faced increased pressure Tuesday over its use of complex financial instruments to mask its rising debt, with European officials demanding detailed explanations by the end of the week and saying they could extend their inquiry to other countries.
Greece also faces legal proceedings brought by the European Commission, the E.U. executive, over flaws in its statistical reporting.
The use of complicated derivative swaps by Greece to mask its deficit was not reported to E.U. authorities or to the European Union statistical agency, Eurostat.
“Eurostat made a methodological visit to Greece on 15-19 September 2008,” said Amadeu Altafaj, spokesman for Mr. Rehn. “At the time the Greek authorities confirmed that, by law, government units could not enter into fictitious derivatives transactions.”
On Monday the Greek finance minister, George Papaconstantinou, said that such swaps were legal when Greece used them. He added that they were no longer being used.