If the €130bn bailout from the troika of the European commission, the ECB and the IMF is delayed – or withdrawn altogether – it's likely that Greece will have to go back to the drawing board and start negotiations with its private sector creditors all over again. For one thing, the write down, or "haircut", of up to 70% on Greek bonds that's at the heart of the negotiations is being bought at the expense of up to €30bn in sweeteners, financed by the euro-zone bailout fund, the European Financial Stability Facility. Without that cash, the Institute of International Finance, the Washington-based body representing the banks in the talks, would be likely to walk away – or at least to offer up a much smaller haircut.....More importantly, though, if the wider bailout offer is withdrawn, the incentives for investors would change fundamentally-----So let me get this straight. The creditors are willing to take a 70% haircut so long as they are given a €30 billion 'sweetener'?? I may be a little slow here but wouldn't that make the final haircut somewhat less than 70%? It's like we are in wonderland with these guys claiming they are giving one thing but in fact quietly taking another. Anyway, it all looks immaterial now the revised figures from the IMF are showing that Greece's debt will now be 129% of GDP by 2020, such is the spectacular collapse of the economy. It seems the only thing growing in Greece is defense expenditure - no doubt buying German arms. Germany cannot approve a bailout on these projected figures....Well, better let them default and get on with the rebuilding ASAP.Breaking news:
Greece's cabinet agreed on Saturday to launch a debt swap for private creditors on March 8 with the aim of completing it by March 11, a government official said. The swap is to accompany a 130-billion-euro rescue package that Athens hopes to agree with its euro zone partners on Monday and will mean that creditors take a 70 percent cut in the real value of their holdings...........Here comes the D-Day!
Greece's cabinet agreed on Saturday to launch a debt swap for private creditors on March 8 with the aim of completing it by March 11, a government official said. The swap is to accompany a 130-billion-euro rescue package that Athens hopes to agree with its euro zone partners on Monday and will mean that creditors take a 70 percent cut in the real value of their holdings...........Here comes the D-Day!
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In Berlin officials rebutted widespread reports of a growing rift between Merkel, who backs Greece staying a member of the euro, and Schäuble....Francois Fillon, French premier, effectively confirmed divisions within Berlin. But he urged France's allies "not to play with" a Greek default and strongly backed Athens: "The Greeks have promised very important reforms. The Europeans now have to keep their commitments." In a seemingly endless tussle between stability and solidarity, finance ministers could end up agreeing to the bailout but only in tranches – with the first one, required for Greece to repay €14.5bn of debt by 20 March, held in an escrow account. This account would be topped up only if Athens did indeed service its debts and implement reforms.IMF members, fearful of its exposure to the European debt crisis, are expected to announce a smaller contribution. The global fund is now set to provide just €13bn of the €130bn aid. Eurozone countries will need to find nearly €120bn. The ECB also exercised caution on Friday and swapped old Greek bonds with new ones to provide protection from a forced writedown on the value of the bond holdings in the impending restructuring. Other last-minute tweaks include lowering interest rates on private sector loans to Greece to help reduce the country's debt to a manageable levelEuropean leaders are working through the weekend to finalise the details of a second €130bn (£108bn) bail-out package for Greece, ahead of a key meeting on Monday. A conference call is expected to be held on Sunday by finance ministry officials from the 17 eurozone countries. If the package is adopted, Greece's finances will be placed under stringent watch to ensure it delivers deep cuts and meets loan requirements. The respected Ernst & Young ITEM Club said: "This could be the template for a future European fiscal union." Marie Diron, economic advisor to the ITEM Club, said: "In practice countries will watch closely over the finances of others, ensure laws are passed and implemented, and corrective measures can be taken to avoid future debt contagion between member states."....Angela Merkel's chief spokesman said after the German chancellor held a conference call with Mario Monti, Italian premier, and Lucas Papademos, his Greek counterpart, that the three were "confident" a deal would be struck on Monday
The Greeks are going to default one way or the other so why
give them billions of euros that will not save them. They have lived on other people’s
money for too long it is now time to end this charade and pull the plug. The operation
was a success but the patient died
I insist it'd be interesting to know how much is the expenditure on art, monuments and museums, that is human heritage, can't be left unattended, if the expenditure is huge a help in that could benefit the Country budget
Breaking news: 10 minutes ago
Greece's cabinet agreed on Saturday to launch a debt swap for private creditors on March 8 with the aim of completing it by March 11, a government official said.
The swap is to accompany a 130-billion-euro rescue package that Athens hopes to agree with its euro zone partners on Monday and will mean that creditors take a 70 percent cut in the real value of their holdings.
Here coms the D-Day!
Socialism has passed it's zenith in world history. The Chinese figured it out decades ago. And now it's the west's turn. The notion of multiculturalism has already been deemed a failure by European leaders. Britain wants to privatize her healthcare system. America is finally opening her eyes to the fact that "progressives" within her ranks are nothing more than Euro-style socialists. As an economic system, socialism is about to become something our grandchildren will only read about in school books...
Prime Minister Lucas Papademos said Greece found all the extra cuts needed to lower spending by 325 million euros ($427 million) to secure a bailout aimed at averting the region’s first sovereign default.
The government identified “a series of additional measures amounting to 125 million euros in order to complete the package of budget cuts worth 325 million euros,” Papademos told ministers at a meeting of the Cabinet in Athens yesterday, according to an e-mailed transcript.
Finance ministers from all 17 euro-area countries meet in Brussels tomorrow as governments close in on a deal to unlock a 130 billion-euro aid package for Greece, the second such international bailout of the country in two years. Germany, the biggest country contributing to euro-area rescues, signaled last week that ministers may be ready to back the plan.
The steps, which Greece has agreed in principle with the International Monetary Fund, the European Union and the European Central Bank will lead to a permanent cut in government spending and a narrower deficit, Papademos said.
Greece has been struggling to give assurances on debt- reduction goals through the end of the decade, heightening uncertainty as the clock ticks toward a March 20 bond redemption, when it must pay 14.5 billion euros or trigger the first default in the euro’s 13-year history. Tomorrow’s gathering of ministers is due to start at 3:30 p.m. instead of the usual 5 p.m.
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