The Greek government said it passed a new budget backed by its international creditors, including larger deficits than previously forecast, as the country moves closer to securing an 8 billion euro ($10.7 billion) aid payout needed to avoid default.

Prime Minister George Papandreou's Cabinet also passed 6.6 billion euros of austerity measures last night to cut the 2012 deficit to 6.8 percent of gross domestic product, missing the 6.5 percent goal previously set with the EU, International Monetary Fund and European Central Bank, known as the troika. Finance Minister Evangelos Venizelos had previously said Greece would miss the targets and the troika accepted the new budget.

The new deficit numbers “should not derail Greece's current negotiations with the troika,” Geoffrey Yu, a currency strategist at UBS AG in London, wrote in a note to clients. “Greece pledged to undertake additional spending cuts in order to secure the next aid tranche. We remain of the view that Greece will ultimately receive its current bailout tranche.