Greece pushes through cuts as Qatar injects cash

Greek_flagGreece's cabinet approved cuts in next year's budget that will include laying off thousands of public sector workers in a bid to convince creditors that the country can repay its debt.

The decision came a day after Greece gave the go ahead for a subsidiary of the Qatari sovereign wealth fund to buy a 9.9% stake in European Goldfields, a London-listed firm that is mining for gold in Greece.

Qatar Holdings, the investment arm of the Qatar Investment Authority, also owns Harrods. The deal will open up a $600 million (€445 million) loan facility for European Goldfields, which hopes to create 1,500 jobs at its mines in north-east Greece.

There could soon be more Qatari money flowing into the troubled European country. The Qatar-backed Paramount Services Holding is funding the merger of two Greek banks, Alpha Bank and Eurobank. Qatar may also redevelop the site of the former Athens airport.

©2011 funds europe