Greek borrowing rates jump on coalition fears

Friday, June 21st, 2013 | Finance News

ATHENS, Greece (AP) — Greece's borrowing costs have spiked to their highest level this year amid rising concerns over the future of the country's governing coalition.

The yield on the country's benchmark ten-year bond has spiked 0.80 percentage point Friday to 11.35 percent. That's the highest in 2013.

The latest pressure on the country comes after one of the junior partners in the coalition, the Democratic Left, rejected a compromise deal over last week's surprise decision by conservative Prime Minister Antonis Samaras to close the public broadcaster. The other junior partner, socialist Pasok, accepted the deal.

The parties have been trying to cobble together a deal on the broadcaster after the high court ruled the decision to close it unlawful.

The conservatives and Pasok can govern together, but the majority would be small.