Greek borrowing costs hit record

**The Greek government’s cost of borrowing on the bond markets has continued to rise.**The interest rate demanded by investors on Greek government bonds has hit a new high compared with German debt - which has the lowest rate in the eurozone.

High interest rates reflect the higher risks investors now associate with lending to the Greek government.

The change makes it more expensive for Greece to borrow the money it needs to recover from its economic crisis.

Governments typically raise money from global investors by issuing bonds - essentially IOUs with fixed rates of interest.

Greece has seen interest rates on its bonds rise steadily as the state of the country’s public finances deteriorated.

Although this has made borrowing more expensive, the government has so far been able to raise the money it needs.

Last month it successfully raised 5bn euros ($6.7bn; £4.5bn) through issuing bonds.This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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