Government officials say Greece not ruling out seeking help from International Monetary Fund

Officials: Greece not ruling out seeking IMF help

ATHENS, Greece — Two senior government officials say Greece is not ruling out going to the International Monetary Fund to seek help in dealing with its debt crisis.

The officials say Prime Minister George Papandreou refused to rule out the option during a Cabinet meeting Wednesday, after which the government announced deeper spending cuts and tax hikes worth €4.8 billion. The officials spoke on condition of anonymity to disclose discussions during the closed-door Cabinet meeting.

Greece is already receiving IMF advice on how to deal with the crisis but European Union officials oppose an IMF bailout.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ATHENS, Greece (AP) — Greece has announced a new austerity plan worth €4.8 billion ($6.5 billion) in savings to deal with the country’s unprecedented financial crisis.

Government spokesman Giorgos Petalotis says the measures are split with €2.4 billion ($3.3 billion) in new revenues like taxes and another €2.4 billion in spending cuts.

He said Wednesday the measures include trimming civil servants’ annual salaries with a 30 percent cut in their holiday bonuses, freezing pensions and imposing further cuts on stipends and bonuses.

Greece also increased the sales tax from 19 percent to 21 percent and hiked taxes on alcohol, cigarettes, luxury cars, yachts, precious stones and leather goods.