U.S. sides with Greece in debt battle

The Greek leader was in Washington Tuesday and told reporters Obama assured him of support in working with the European Union to rein in loan interest rates that are hobbling Greece's ability to bring down its deficit, Kathimerini reported from Athens.

Papandreou has also met with German Chancellor Angela Merkel and French President Nicholas Sarkozy in the past few days seeking support for economic reform to stop speculators from driving up the cost of bonds.

Greece needs to borrow around 50 billion euros, or $68 million this year, with 20 billion euros, or $27 million of that due by May.

Papandreou said Obama agreed the regulation of the international financial system should be discussed at the Group of 20 summits in Canada in June and South Korea in November, the report said.

In a piece written for the International Herald Tribune, Papandreou expressed his frustration.

"Despite the radical reforms my government has launched, opportunistic traders have forced interest rates on Greek bonds to record highs," he wrote. "Some of these speculators are making a fortune by betting on our nation's misfortune."

Copyright 2010 United Press International.