In order to reduce its budget’s deficits, Greece on Monday has announced an extra measure worth of Euro 6 billion. It has emerged that in order to improve the financial condition of the Greece the Greek banking sector would be required to recapitalize its offset banks losses on Greek government bonds and should seek liquidity support from the European Central Bank. But Moody’s Investors Service is of the opinion that such a move would leave its lenders dependent on the European Central Bank for the coming future.

At present, the country's finances are being reviewed by inspectors from the IMF, the European Central Bank and European Commission to determine whether Greece qualifies for the next batch of loans under the program, worth Euro12 billion.

Finance Minister, George Papaconstantinou said that Greece won’t be able to pay salaries and pensions without the funds. Even with the loans, many analysts and European politicians are doubtful that the country can pull itself out of the debt crisis and reduce a budget deficit of 10.5 % and debt of more than Euro340 billion without some form of debt restructuring which implies paying lenders less than the full amount or later than originally scheduled.