Jean-Claude Juncker, head of the eurogroup, confirms that a deal has been reached on a new financial programme for Greece, and the details of the Private Sector Involvement (the reduction in Greece's debt pile). Juncker also told the assembled media that the package will bring Greece's debt-to-GDP ratio down to 120.5% by 2020, with a new €130bn of government financing running until 2014. Olli Rehn, EC commissioner, confirms that the eurogroup have agreed to create a "segregated account" for Greece's second rescue fund. In other words, an escrow account, which will allow lenders to claw back the bailout if Greece misses its targets. Rehn also spoke about plans for "strengthened monitoring" of Greece. It's not clear whether this is the 'permanent troika presence in Athens' which the Dutch finance minister demanded. Christine Lagarde, head of the IMF, told the press conference that she "personally welcomed the agreement", which would give Greece the freedom to restore its economic competitiveness. Jean-Claude Juncker also confirms that Greece's creditors will take a nominal haircut of 53.5%. That's up from their previous final offer of 50%. Greece will now formally launch this offer to its lenders in the "coming days", he added. Previously, the PSI window was meant to open on Wednesday. In addition (as rumoured) the interest payment charged on Greece's existing loans will be cut. Prime minister Lucas Papademos says the deal is a "historic" moment for Greece. He confirms that an agreement has been reached on the 'basic conditions' of the Private Sector Involvement in the deal.
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, February 21, 2012
What a sorry bunch of clowns ....Greece in "saved" ...amuzing if it wasn't sad
Jean-Claude Juncker, head of the eurogroup, confirms that a deal has been reached on a new financial programme for Greece, and the details of the Private Sector Involvement (the reduction in Greece's debt pile). Juncker also told the assembled media that the package will bring Greece's debt-to-GDP ratio down to 120.5% by 2020, with a new €130bn of government financing running until 2014. Olli Rehn, EC commissioner, confirms that the eurogroup have agreed to create a "segregated account" for Greece's second rescue fund. In other words, an escrow account, which will allow lenders to claw back the bailout if Greece misses its targets. Rehn also spoke about plans for "strengthened monitoring" of Greece. It's not clear whether this is the 'permanent troika presence in Athens' which the Dutch finance minister demanded. Christine Lagarde, head of the IMF, told the press conference that she "personally welcomed the agreement", which would give Greece the freedom to restore its economic competitiveness. Jean-Claude Juncker also confirms that Greece's creditors will take a nominal haircut of 53.5%. That's up from their previous final offer of 50%. Greece will now formally launch this offer to its lenders in the "coming days", he added. Previously, the PSI window was meant to open on Wednesday. In addition (as rumoured) the interest payment charged on Greece's existing loans will be cut. Prime minister Lucas Papademos says the deal is a "historic" moment for Greece. He confirms that an agreement has been reached on the 'basic conditions' of the Private Sector Involvement in the deal.
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The deal – details of which were still being worked out by European finance ministers in an all-night session in Brussels – was expected to bring Greece's debt down to 120.5 per cent of gross domestic product by 2020, according to the official. That's around the maximum that the International Monetary Fund and the eurozone considered sustainable.
The diplomat spoke on condition of anonymity because a formal announcement was pending.
The country needs the 130 billion euro ($170 billion) bail-out so it can move ahead with a related 100 billion euro ($130 billion) debt relief deal with private investors. That deal needs to be in place quickly if Athens is to avoid a disorderly default on a bond repayment on March 20.
Last week, a new report from Greece's debt inspectors indicated that the country's debt would still be close to 129 per cent of GDP by the end of the decade, despite massive new spending cuts planned by Athens and a tentative 100 billion euro debt relief deal with private investors.
to report that this economic insanity has now spread to the Brazilian media.
Yesterday morning, TV Record, Brazil's second largest free-to-air station, reported that the Greek government was in loan negotiations with the European Union, the objective being "to get the country out of debt".
I know about pigs and monkeys, but are scientists certain that we aren't closely related to the lemming?
It is disastrous to be in the EUSSR. Two world wars were fought to stop this. A complete waste of lives, now everyone has to get down on their hands an knees to beg for mercy from the EUSSR, well done everyone.
Again, the banks made out like bandits, and the Greek people and Eurozone taxpayers pick up the tab.
We should be dragging these Troika types off to the Hague. Another in the endless string of stories about a "bail out." None of these stories makes sense: either the writers do not know what they are reporting and just mindlessly repeat meaningless gibberish fed them by "EU diplomats" or the "bail out" deals, in fact, are meaningless gibberish.
Can anyone explain to me how the answer to a debt problem is to load the debtor down with yet more debt?
Maybe I need to be a Euro-politician to grasp the intricacies, but it sounds more like complete insanity to me!
I feel so, so sorry for the Greek people with all this. Their politicians' refusal to leave the Euro is costing them money, pride as a nation, everything! And for what?
Of course they aren't fixing the debt problem. The idea of all this is to continue kicking the can down the road instead of dealing with the very real underlying problems with the Euro.
All this misery is caused not to give money to corporations (They are the ones taking the 'haircut' remember?) but because EU politicians would rather beggar whole nations than admit they are wrong.
So between the British, US and Greek bail-outs $1,600,000,000,000 has been passed from your pension funds to private bankers so they can buy jets and yachts. Which they are doing. So says a former CFO of RBS.
So what is that? One billion, six hundred million, million of taxpayers' money? Wow, and you're all OK with that?
You're not wrong this time, seneca.
Trouble is the good ole Blitish genellmen don't do rioting about things important.
If it was a Football match they'd be a "Q' round the block! Recommended by 1 person
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seneca
31 minutes ago
I agree - the US has Occupy, which is weak and can't win but is a voice nonetheless, what has Britain got?
That level would have prevented the IMF and some euro countries from putting up more rescue money – on top of a 110 billion euro bail-out Greece received in 2010.
Moving in and out of talks with bondholder representatives and consultations among themselves, the IMF and the European Central Bank, the ministers pushed private investors to accept steeper losses, going beyond a 50 per cent cut in the face value of their bonds.
It was unclear what the final deal with bondholder representatives looked like, but the lower debt level suggested that they compromised further. The big question will now be how many banks and other investment funds will actually agree to participated voluntarily and whether Greece will have to force some holdouts to sign up to make the deal effective.
Source: AP
More details of the Greek government's press conference. It is planning to hold elections once the details of the new agreement have been voted through the Greek parliament.
Finance minister Venizelos also declared that the package should end fears that Greece will exit the euro, arguing the Greeks should "bring back your money to Greek banks".
5.01am: The Greek government is now holding a press conference in Brussels.
Prime minister Lucas Papademos says the deal is a "historic" moment for Greece. He confirms that an agreement has been reached on the 'basic conditions' of the Private Sector Involvement in the deal.
The Institute for International Finance is expected to hold its own press conference later this morning, which should shed light on the details.
Finance minister Venizelos is also speaking. He says that this is the first time that Greece is "reducing debt rather than adding to it".
Rumours and Concern, you say? - damn right there is...
Good to see the people of spain taking to the streets again...
What's happening in good old blighty now? - Are we all to wrapped up in the Olympics and the jubilee now to give a damn what our wise MPs and wise business elders are taking away from us to pay for it all and make a nice little earner on top?
what an angry comment! - sorry about that... I'm in quite a good mood today too...
I am a believer in capitalism and small government and believe that a culture of paying one's debts is morally necessary and conducive to prosperity in the long term for nations and individuals alike. If they had been chosen by the independent will of the Greek people I would support the austerity measures.
But God's sake, Greece, I am joining with many left wingers when I say, don't let this imposed humiliation persist - default and get out of the Euro. It will be hard (like this isn't?) but at least you will have chosen your own course and be paying your own price.
The Euro has been like a drug for Greece. It gave a high, felt great for a while but caused dependency and stopped the drug-taker seeing the need to moderate his lifestyle. The time has come to quit.
And I'd give the same advice to the Germans, for reasons that are superficially different but at base the same.
Tagesspiegel: The austerity program hits greek people hard. Shouldn't we be showing more understanding for their concerns?
Schäuble: I feel greatly for greek citizens. The vast majority, who are greatly effected by the reform and savings measures - and let me again express my respect for that - have nothing to do with the unimplemented reforms, the loss of competitiveness or the unproductive use of money in the past. When one then sees in the greek media, how a not unimportant part of the elite in this serious situation still boast about not paying taxes, thus showing little concern for their country or for their fellow citizens, one can understand why it isn't felt to be fair or just.
emanating from the neo-liberal economic ideologues who got Greece and the world into the current mess,
I can never quite pin down what "neo-liberal" means and, having asked several people who used it for definitions and got contradictory answers, strongly suspect that it is mostly just a cry of rage at the world for not giving ponies to all.
But if by "neo-liberal ideologues" you mean "free market ideologues", Greece and the world should have been so lucky as to have their emanations deciding what happened - but alas, Greece and the world got the "wisdom" of the EU and the spendthrift national governments instead.
The only connection the average free market fundamentalist had with the euro and the bank bailouts was to warn like Cassandra to an unheeding world that both were likely to prove very bad things indeed for everyone, especially the poorest.
Iceland didn't default on its Soveriegn debt. Iceland let it bank's default and reneged on its deposits guarantee to overseas depositors. This might be an option for Ireland but not Greece. Greek banks were rather conservative compared to many in Europe and their only real problem was their exposure to Greek Soveriegn debt. If Greek defaults on its Soveriegn debt it would probably also bankrupt its banking sector and the Greek State doesn't have the money to bailout its domestic depositors. Iceland was also not stuck in the Euro
80% of the Greek population do not want the bailout and they prefer to be out of the euro. The current govermnt is illegal as it was not voted by the people, Papadhmos was selected by the EU IMF to be the PM of Greece, the same happened with Italy. What world we live in?
Did you know that the current PM of Greece was the guy that "deceived" Eu and let Greece go into the euro? Why is this guy selected as PM now by the same people? Why are they liying to the GReeks and to the whole of Europe?
I feel that the whole world is deceived by the Greek dragety, the keep bringing the country to the egde aplying new measurments the poor Greeks believe them and then we start from the beggining....Germany should take the responsibility and pay what they deserve to pay to save the euro, regrdless if Greece is in or out!
he ECB has rewritten the rules on Greek debt making itself first in the queue to be paid. Debt holders are now no longer equal. The EU has forced all Greek politicians to sign a pledge saying they will not change any of the austerity measures should they win in the upcoming election.
The hands on the Greek cheque book are the same ones that can't get their accounts signed off since day one due to questionable accounting and billions going 'missing' into unknown accounts.
The EU President, Von Rompuy, has not uttered a single word about any of this scenario. What precisely is his job other than scowling at Farrage speeches?
Greek people are starving and destitute. Schools have no heating, hospitals have no medicines. They are rioting in the streets every day in protest. Businesses are closing down hand over fist, unemployment is rocketing, emigration is escalating, austerity measures are imploding the economy.
How is any of this representative of the average Greek citizen? In this entire process has anyone in the EU or ECB considered what will be left of Greece when they rake through the ashes in ten years time? If ever there was a clear and demonstrated resurrection of fascism in central Europe this has got to be the most blatantly obvious. This will not end well for any of Europe when the EU was supposed to prevent war on the continent they are pushing civil war and rebellion.
How will these EU financial regulators work?
I can't see them managing from Brussels or their home countries - not enough control or transparency -would they be based in Greece?
If so, where would they live? not amongst the Greek people surely..
Walled & gated compounds & taken to work in a fleet of new black S class mercedes? sweeping through the desolate streets of Athens, traffic lights green all the way (not that the local population can afford cars of course)
I can't wait to see how they do it...! And after that.. the outcome from the people..!
after 45 years of obligatory payments to the federal german pension fund i will get a return at the age of 67 which equals about 40% of my last income.
german government urges people to save money for their retirement.
so many people have been looking for safe investments that guarantee not beeing poor after retirement.
we were told that investments in real estate funds and governments bonds are the safest way to have some extra money as a retiree although beeing told there will just be a modest yield on this type of investment.
i cant`t see the evilness of the banks trying to save their customers (my) money!
i didn`t give my money to a casino as i depend on it in some years and i don`t feel greedy when i hope the interest rate of my investment will be above the inflation rate...
There is a nasty sting hidden in the tail.......
As part of this debt rescheduling, not only must bond holders lose more than 50% of their capital and take less interest on their new bonds as well as much longer tenor (Time to maturity) but hidden away was the news that the new commercial bonds have been subordinated to ECB debts: thus ECB enjoys first call.
And this effective screwing of commercial capital markets, happens at a time when the Eurozone, its banks and the ECB desperately need fresh extra commercial capital to prop up EFSF etc.
Interesting how last week China's Sovereign Risk funds rejected investment in Euro rescue strategies (Again) and stated they were simply interested in acquiring Eurozone businesses: not debt.
Even with much more favourable borrowing terms, saddling the Greek economy with yet greater public debt when the economy is in process of imploding, social conditions increasingly dire and unsustainable, simply means Greece still cannot afford to repay old and new debt.
Stand by for another civil war.
Meanwhile Greece will become ungovernable and descend into anarchy, but the euro experiment will be salvaged. At what point will the oppressed majority rise up and call a halt to this insanity? "Christine Lagarde, the head of the IMF, was unable to confirm how much the global fund would contribute to the new Greek bailout" .
In other words "none of your business, pleb"
I wonder if our PM or Chancellor can enlighten us on how much we are contributing through the IMF.
'after asking private investors to take bigger losses'
'Asking'? You mean they have a choice? Or is this Eurospeak?
After this, only an idiot would buy bonds issued by any Eurozone government.
The inherent problem with 'debt based money' is that it 'inevitably enslaves' those who are being 'forced' to use it.
As we now are through our 'governments insistence' that we pay both our taxes and our court fines with it.
You see, as soon as the first amount of debt based currency is created, it has interest attached to it.
An action which if you look at it intelligently, in fact makes the debt 'inescapable'.
Why?
As the only money you are actually able to pay down your debt with, must again comes from the same source.
And as soon as it is created, again it has interest attached to it.
The Greek people are 'not to blame' for their current set of circumstances.
They are 'a direct result' of our world now operating on 'debt based' money.
The 'simple truth' that this entire situation shows us, is as follows.
The further you move away from honest, tangible money (gold and silver), the more you move towards mans money.
And mans money inevitably results in tyranny, enslavement, misery, and death.
Merely look around you for confirmation of this fact.
2 months down the line and the greeks will be back, cap in hand pleading for more while the majority of them will still go on with the national past-time of not paying tax!
The fundamental issues still haven't been addressed, though. This bail-out agreement will follow the same path as the last one - meaning it'll probably be dead even before this weekend. The darkens day for Greece. Very sad that the ones responsible for the crises were not brought to account and that duty is now passed to the mob to deal with them.
General feeling in Holland? De Jager has sold the Netherlands out. This does not go to well with the Dutch population, whether you like it or not. In order to pull our country out if its recession, the government needs to save about 15 billion. About 103 pensionfunds have cut 2,3% in pensions. Now you get the construction that a part of this 15 billion is going directly to Greece. Some people are now ready to burn European flags. Once, the European project was designed to get hatred out, now they reach just the opposite. Hatred against the EU and its dictators is common in the Netherlands now. And in the EU they are still wondering as to why this has happened.
Dutch government could torpedo the plans in the vote next week.
This is the biggest CROCK! Greece needs to default full stop so they can move on. This is a deal to prop up a corrupt financial Ponzi scheme run by the elite Socialist members of the ECB and IMF.
"This is the sort of thing that prompts revolutions ..."
If it is not wrecked already (street scenes in Athens would seem to indicate a few emerging social problems), then Greece now faces utter ruin at the hands of a relatively small number of unelected bureaucrats living the life of Riley in a foreign land.
Surreal, or what? Recommended by 0 person
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kaiten
4 minutes ago
Let´s hope the April election will bring a quick resolution to this crisis and Greece will be out of eurozone by mid 2012
Here from the persepctive of this writer in the United States of America where I live, this appears on the surface but not just superficially to be beneficial all round. Although many 'anti-Euro prejudice' denizens particularly in the United Kindom (with or without Scotland attached) believe
profundly that the Euro whether printed in Athens, Greece, or Paris, france, Amsterdam or Holland, is as Monty Python once sais a dead Parrotm, over here on the other side of the Atalntic, this currnecy now seems to have a 'spring in its step' -and without humour, I will dare to say even 'a summer',I was one who never believed that those high-up leaders in Brussels and Europe were wrong in sticking with thier fundementalistic principles, which, after, all they begingly believe to be in the best interests of all European peoples, even those, like the Britains who have not yet had the courage to join this workable scheme, which was designed to bring secuerity, both financial, social and eocnomic harmony to millions of citizens who deserve and crave it.Even today, I find it a struggle within my sphere of thought to undertsnad the rejoicing when the Euro currency (similar but differwent to the United States of America currency - the US dollar) goes wrong and rejecting the same urrency when it goes right.I wrote a muhc longer commentary to accompany Dr Samuel Brittain's article in The Daily Telegraph 'Steady M1 + M2 + M3 Growth Equals A Secure Currency' published approximately 23 July 2009 which those interested in, why I might be correct in my assertions and assumptions could refer to.In the meantime, I recommend that those The Daily Telegraph readers presently on, beuase the Euro currencyt is still very much alive get used to the idea nad grow to like, if not love it.Yes, let us all 'move on' indeed. I recommend and commend your brave Chancellor of the Exchange for his insightful and inpsirational.See you online again soonIgnoramus JackUnited
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