ATHENS, Greece - November 15, 2010 - Greece is officially Europe’s most indebted country and its position will worsen this year, new figures from the EU showed.

The country also said it would miss its deficit target for this year, set as part of the 110 billion euro bailout Greece received from the EU and the International Monetary Fund (IMF) in the spring.

The EU’s statistics office, Eurostat, issued its final revised accounts for Greece over the past four years. They showed that in 2009, the country’s debt was 126.8% of gross domestic product (GDP), higher than Italy’s, previously the worst in the EU at 116%. Greece’s debt is set to jump to 144% of GDP this year.

Greece’s deficit last year at 15.4% of GDP was also worse than Ireland’s, at 14.4%, the latest euro zone country to come under pressure to seek a bailout.

The Greek government admitted the deficit this year will be 9.4% of GDP, rather than the 8.1% target announced in May, despite an austerity program of tax increases and public spending cuts.

The yield on Greek 10-year bonds rose to 11.296%.

The country was driven to the brink of default earlier this year after its borrowing costs leapt as a result of repeated revisions to its deficit figures and having its credit rating downgraded by Moody’s.

“What looked a very difficult mountain for Greece to climb in terms of getting on a more sustainable fiscal path beforehand, now looks even more difficult,” said Marc Ostwald of Monument Securities.

“Clearly they are paying a very heavy but justifiable price for their previous omissions and ostensible deceptions - though the complicity of other Euro area members in this, be it as a result of negligence or willful self-deceit, cannot be denied.”