Greek debt swap may shrink 2012 budget gap

Greece's 2012 budget plan will forecast a budget deficit of 5.4% of GDP if a planned debt swap to reduce the country's debt maintenance costs goes ahead, state radio reported on Friday, without citing a source.
Excluding the effects of the debt swap, also known as the "PSI", the draft budget predicts that the country's fiscal gap will be 7.0% of gross domestic product next year, from 9.0% in 2011, radio NET said.
The Greek government is scheduled to submit its final 2012 budget plan to parliament later on Friday, at 1000 GMT.
Newspaper Kathimerini reported that the 2011 budget deficit could be as high as 9.3% of GDP, according to the budget draft, higher than an estimate of around 9% revealed by Prime Minister Lucas Papademos last week.
Greece's fiscal performance is a key factor in the country's effort to cut its debt under an ongoing EU/IMF bailout.
EU leaders agreed last month to impose a 50% write-down on the value of Greek bonds held by private investors to cut the country's debt load.