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dkf

(37,305 posts)
Sun Feb 3, 2013, 12:23 AM Feb 2013

Greek political parties to testify over bank loans

(Reuters) - Greek prosecutors have ordered the two main ruling parties to testify in an investigation into more than 200 million euros in loans they received from banks, officials said on Friday.

The investigation - which is examining whether the loans are legal and whether any wrongdoing was involved - could embarrass the fragile conservative-led government, which relies on aid from the European Union and the International Monetary Fund.

Last year a Reuters report revealed the conservative New Democracy and the Socialist PASOK parties were close to being overwhelmed by debts of more than 200 million euros as they face a slump in state funding because of falling public support.

Senior officials from the two parties will appear before financial crime prosecutors on February 18, court officials said.

"They will be investigated for suspected crimes against the state," said a court official who declined to be named. The prosecutors are also looking into the finances of the Communist KKE party, the court official said.

http://www.reuters.com/article/2013/02/01/us-greece-parties-idUSBRE91010O20130201

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