Merkel talks to Greek PM
German Chancellor Angela Merkel talked with Greek Prime Minister Georges Papandreou Tuesday, his office announced, as the eurozone debt crisis threatened to claim its first bank victim.
Papandreou's office said the call was made as "part of the frequent and regular contacts" between the two leaders.
Merkel placed the call, a statement said.
The chancellor and Papandreou discussed developments in Europe and the eurzone and reviewed the agreements reached at a July 21 summit -- a second Greek debt bailout and measures to boost the bloc's rescue fund, it said.
They also discussed Monday's eurozone finance ministers meeting which decided to delay a decision on granting Athens another tranche of debt aid until later this month and called for further Greek efforts to stabilise its public finances.
On Tuesday, global financial markets were in turmoil once again on concerns that Greece might finally default, with investors worried that the banks, especially in Europe, were under increasing pressure from their exposure to Greek government debt.
France and Belgium stepped in Tuesday to support Dexia after the Franco-Belgian bank ran into funding problems.
© 2011 AFP