Greek economy seen shrinking less than 4%

Greece's economy will contract less than an official 4.0 percent forecast this year and government guarantees to banks are aimed at ensuring adequate credit expansion, the country's finance minister said.

"The economy is in recession but one that is more shallow than what was initially expected. The year should close with a performance that is better than the 4.0 percent contraction forecast," Finance Minister George Papaconstantinou told deputies in parliament.