GREECE PLANS TO REDUCE 1987 FOREIGN BORROWING
Greece aims to reduce foreign borrowing
to 1.6 or 1.7 billion dlrs this year from 2.6 billion in 1986,
and will use some of the funds to make early debt servicing
payments, the Governor of the Bank of Greece, Dimitris
Halikias, said.
    He told reporters this year's borrowing forecast exceeded
immediate needs, but Greece wanted to take advantage of low
international interest rates in order to make servicing
payments at a lower cost.
    Greece's foreign debts totalled 16.8 billion dlrs at
end-1986, up from 15.2 billion at end-1985, Halikias said.
    He said the extra funds available to Greece this year will
go towards servicing debts falling due after 1990. He did not
give figures.
    He said Greece was able to cut borrowing because a two-year
austerity program it adopted in October, 1985 cut its current
account deficit to 1.75 billion dlrs last year from a record
3.3 billion in 1985.
    Halikias said he was "fairly optimistic" Greece would reach a
current account deficit target of 1.25 billion dlrs this year.
    He said domestic demand has fallen, reducing the need for
imports, while Greek exports are becoming more competitive.
    Economy Ministry figures show exports rose to 4.9 billion
dlrs in the first 11 months of 1986 from 4.1 billion in the
same. 1985 period, while imports dipped to 10.2 billio dlrs
from 11.4 billion.
 REUTER
