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Summary Greek PM George Papandreou Saturday canceled his US visit to deal with a deepening crisis at home.
Finance Minister Evangelos Venizelos rushed to allay fears the canceled trip signaled imminent default, saying such talk was ridiculous, but the conservative opposition seized the opportunity to demand snap elections, fanning fears Greece lacks the will needed for tough measures ahead.The comments and analyses about an imminent default or bankruptcy are not only irresponsible but also ridiculous, Venizelos said in a statement. Every weekend Greece ... is subject to this organised attack by speculators in international markets.Papandreou was in London, en-route to United Nations and International Monetary Fund (IMF) meetings, when he decided to turn back after discussing developments with Venizelos, government officials said.The prime minister judged that he should not be away. He wants to ensure that all of Greeces commitments (to its EU partners) are fulfilled, government spokesman Ilias Mossialos told Reuters.A government official speaking on condition of anonymity told Reuters pressure was high on Athens from euro zone partners to take additional measures to merit continued funding from a 110 billion euro ($150 billion) bailout to avert default.There is an issue of trust. Our partners want very specific steps and commitments and our record so far unfortunately does not inspire confidence, said the official.Next week, Greece is due to resume talks with EU and IMF inspectors who will judge fiscal progress before releasing the next 8 billion euro loan tranche in October. Greece has said it has cash until next month.Papandreou was to meet United Nations Secretary-General Ban Ki-Moon in New York on Sunday and IMF head Christine Lagarde on Tuesday. Venizelos is still due to attend an IMF meeting in Washington later in the week.
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