Greece to hold referendum on debt crisis

Greek Prime Minister George Papandreou has announced that a referendum is to be held on a new European Union aid package, intended to resolve the country's debt crisis.



Prime Minister Papandreou said a vote of no-confidence would also be held on the deal.



The package envisages losses of up to 50 per cent for private holders of Greek debt and a new € 100 billion loan.



There have been large-scale protests in Greece against the austerity measures introduced by the government.



However, Papandreou told a meeting of his governing Socialist party that the government trusts the judgment of Greek voters.



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