Eurostat chides Greek data as bonds slammedExplore related topics

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Eurostat chides Greek data as bonds slammedExplore related topics
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Comments Screener (3) Alert Email Print ShareBy Steve Goldstein, MarketWatch
LONDON (MarketWatch) -- The Eurostat statistics agency on Thursday chided the quality of Greece's budget data, saying that its budget deficit may be revised up by up to a half percentage point from an already high 13.6% on uncertainties over issues including off-market swaps.

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• Credit Suisse profit edges up, inflows improve /conga/story/misc/international.html 72092 "Eurostat is expressing a reservation on the quality of the data reported by Greece, due to uncertainties on the surplus of social security funds for 2009, on the classification of some public entities and on the recording of off-market swaps," the agency said.

And even if Eurostat doesn't revised the figure higher, the Greek government had previously said the deficit-to-GDP ratio was 12.7% last year.

The Greek finance ministry said the discrepancy between the 13.6% figure and its prior estimate of 12.7% was down to a downward revision of its economic performance in 2009 as well as a reassessment of pension fund accounts.

The charge comes as Greece is holding negotiations with the International Monetary Fund and euro-zone nations over a potential package of loans worth some 45 billion euros as the country attempts to avoid a default on loans due in about a month's time.

The news sent the gap between Greek and German bonds of equivalent maturity to a staggering 5.42 percentage points, a fresh record high.

The euro /quotes/comstock/21o!x:seurusd (CUR_EURUSD 1.3352, -0.0037, -0.2764%) moved lower as well, falling to $1.3371. European stock markets turned lower and U.S. stock futures also moved into the red.

Even if Greece's deficit ratio was revised higher, Ireland would still have the ignominy of having the highest deficit-to-GDP ratio in Europe at 14.3%.

The U.K. ratio was 11.5% after Eurostat adjusted for how mobile licenses were accounted. Spain's deficit-to-GDP ratio was 11.2% and Portugal's was 9.4%.

Steve Goldstein is MarketWatch's London bureau chief.