Greek borrowing cost at new high

Greece is still regarded as a risky bet by investors

The Greek government's cost of borrowing hit a new record high on Monday following delays to Greece's economic recovery plans.

The interest rate charged by investors for ten-year bonds hit 7.6% - the highest since the euro was introduced.

European officials were due to meet in Athens earlier to agree the terms of a debt rescue package for Greece.

But the widespread disruption to flights has delayed the meeting until Wednesday.

The interest rate charged to Greece compares with a rate of 3% charged to Germany - regarded as the safest economy to lend to in the European Union.

Greece is still struggling with billions of euros of debt, and has been forced to agree a rescue deal with the EU and the International Monetary Fund (IMF).

The deal, already agreed in principle, is designed to provide an alternative source of borrowing for Greece, should the bond markets continue to be too expensive.

Details of the plan, including the rate of interest Greece will have to pay, have yet to be finalised however.

Meanwhile, the disruption caused by the cloud of volcanic ash drifting across Europe has hit European investor confidence.

On Monday the euro fell further against the dollar, dipping below $1.345.

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