ATHENS, Nov 27 (Reuters) - Greece is not facing any difficulties raising funds from capital markets and will borrow far less next year than in 2009, the country's finance minister said on Friday.
Investor concerns about Greece's deteriorating finances are driving up borrowing costs, pushing up the yield premium on Greek government bonds to a seven-month high above 200 basis points over benchmark German Bunds.
"The borrowing plan of 2010 will be considerably smaller than in 2009," Finance Minister George Papaconstantinou said in a televised statement.
"Market turbulence in recent days is the result of the country's lost credibility under the previous government, but also of speculative moves," Papaconstantinou said.
The 10-year Greek/German government bond yield spread hit 215 basis points on Friday, partly on global risk aversion stirred this week by debt problems in Dubai, but also on persistent worries over Greece's burgeoning national debt.

Papaconstantinou, who took office after the socialist PASOK party's election victory in October, said: "Greece is currently not facing any borrowing difficulties."
Greece's budget gap reached 12.7 percent of gross domestic product (GDP) this year -- more than 4 times the European Union's target ceiling -- and the government is aiming to cut it to 9.1 percent next year.
Greek bank stocks sold off on Thursday on worries over the impact of higher debt funding costs on corporate earnings and a weak macroeconomic outlook.
Greece borrowed more than 60 billion euros ($90 billion) this year. Its debt is expected to balloon to 121 percent of gross domestic product (GDP) next year from 113 percent in 2009.

(Reporting by Lefteris Papadimas, Writing by Harry

Papachristou; Editing by Ruth Pitchford)

(harry.papachristou@thomsonreuters.com; +30 210 3376455;

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Keywords: GREECE FINMIN/

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