Greek PM Says US Banks Victimized Greece, Calls For Regulation

5-16-2010
ATHENS (Dow Jones)--The Greek Prime Minister George Papandreou said Sunday that he agrees that U.S. investments banks victimized Greece and wants more regulation of financial markets, but that deficit reduction plans are progressing well.
Asked whether Greece was a victim of American investment banks in an interview on CNN on the Fareed Zakaria GPS show, Papandreou said there were "negative practices that are currently being investigated...so there is responsibility there."
The prime minister didn't rule out taking legal recourse against the banks, but he wants to review the results of investigations before making a firm decision.
Papandreou said: "In 2008 we had governments bailing out the financial markets and the banks, and now the banks are funding hedge funds that are betting against the same governments that actually helped them.
"This is a paradox and I think this is where we need to also regulate markets.
"We are fully aware of our responsibilities and what we must do. And there is determination, and not just from me and the government, but also from the Greek people to turn things around and make structural changes."
Greece has promised to cut its budget deficit from 13.6% of gross domestic product in 2009 to below 3% of GDP in three to four years.
Papandreou said: "We are determined to do it and we already have results in the first quarter where we have cut the budget by 40% compared to last year."
The prime mister said a majority of Greek understand that the measures are for "the salvation of the country and the economy. It is easy scapegoat Greece and engage in Greek bashing but we are proud nation, give us a chance and we will show you."
By Nick Skrekas, +30 210 2830685; nskrekas@trk.forthnet.gr