Friday, March 9, 2012

Greece slashes its debt burden and qualifies for fresh bailout money as part of the €130bn (£109bn) package from the IMF

Greece has won sufficient support from its private-sector creditors to clinch a new bailout package, as it announced on Friday morning that 85.8% of bondholders had agreed to take heavy losses on their investments....At the end of several months of wrangling with creditors, the government reassured markets that it saw take-up for its bond swap deal rising to more than 95% once special clauses were triggered to enforce the agreement. Market players are hopeful the move that will at least briefly quell fears that the Greek crisis will send more shockwaves across Europe and beyond and further harm the global economy....For the bondholders the deal means taking losses of as much as 74% on their holdings but European policymakers have insisted that is a relatively small price to pay for containing the eurozone sovereign debt crisis. Greece is now expected to enforce so-called "collective action clauses" on any holders who had not accepted the bond swap deal.....The deal will mean embattled Greece slashes its debt burden and qualifies for fresh bailout money as part of the €130bn (£109bn) package from the IMF, the E.U. and European Central Bank.....Greek finance minister Evangelos Venizelos thanked creditors for help returning "Greece to a path of sustainable growth".

OK still working this out this morning.... My thoughts, the Greek bond holders have agreed the haircut. But all bonds are insured by CDS----BUT its now up to the banks, the same ones who sold the CDS to decide if they will pay out the insurance? ... This debt swap and the recent flooding of EU banks with a trillion cheap euros seems to be a desperate face saving attempt by EU politicians to keep the increasingly Frankenstein like eurozone patient alive....wowwwww
Surly that can't be right ...!!!!

6 comments:

Anonymous said...

Swapping more expensive debt for cheaper debt by forcing everyone too is a technical default!

Will this increase their cash flow, no will this stop defaults in the future no, was the majority of bind holders the ECB in a roundabout way yes, did they manipulate the situation so everyone had to take debt swap yes.

Anonymous said...

Congratulation to Greece! Succeeded in implementing the golden fleece. Borrowed all that cash, now kept it in your own stash. Don't worry about paying it back, it's a gift from the taxpayers elsewhere. Oh, and when Greece you steal again, please call it what it is so that Stalin's words can ring true once more, "If you know the rape is coming, might as well enjoy it."

Anonymous said...

Greek Parliamentary conversation:
Good news Tassos, the idiot Europeans have re-instated our credit card with more credit, what shall we buy?

Wait Alexis! maybe we should put some more money in our pension funds, or plough a bit into that little island just south of Crete that we bought out of the last bail out.

Better to put it in that Swiss bank account Tassos the Swiss are so discrete in these matters.

Oh dear so many choices, I don't suppose it worth actually trying to pay the milkman then?

Nah! Open another Retsina and watch the sun come up over our land of milk and honey!!!! NdaxiReh!!

mircea said...

OK still working this out this morning.

My thoughts, the Greek bond holders have agreed the haircut.

But all bonds are insured by CDS.

BUT its now up to the banks, the same ones who sold the CDS
to decide if they will pay out the insurance?
Surly that can't be right!!!!

Anonymous said...

There is little if any investigation into who the 'private investors '. It seems to be the likes of RBS. Is our money safe or will this be yet another write off for the Banks?
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winterwarm
15 minutes ago
Probably a write off - but there will probably be another round of bonuses for the bankers for doing such a good job and saving the Greek economy - hoorrraahhh!!!

Seems to me though that now Greece has done this, it may occur to all the other countries struggling with debt mountains to do this too, resulting, as someone else says in a complete lack of confidence in EU countries paying back their loans

Anonymous said...

Italian ten year yields are back to 4.7% - last seen in June 2011 - the Mario Monti effect. Irish borrowing costs have also fallen dramatically from 15% in July to 6.7% currently. But the story is the opposite for the Iberian countries, with Portuguese yields rising from 9.5% in September to 13% now and Spanish yields starting to increase as the country's debt position worsens