"(Reuters) - Euro zone finance ministers unanimously approved a detailed 30 billion euro ($40.5 billion) emergency aid mechanism for debt-plagued Greece on Sunday but stressed it had not requested that the plan be activated now. European Economic and Monetary Affairs Commissioner Olli Rehn said the euro zone loans would carry an interest rate of about 5 percent -- well below current market rates of over 7 percent. Skepticism over Greece's ability to manage its 300 billion euro ($401.2 billion) debt pile, more than its 240 billion euro annual economic output . . . Greece needs to borrow about 11 billion euros by the end of May to refinance maturing debt and interest charges. Its overall 2010 borrowing requirement is 53 billion euros." http://www.reuters.com/article/idUSTRE63A13K20100411
Okay now is this the FINAL outcome, seems every time they find a solution they withdraw it, markets push back a few points and then rally off the fact that they are getting bailed out for the 10th time, is this the final verdict, is this the news the markets want to hear? This news is getting so repetitive, seems no matter what country goes under there always seems to be a definite solution to the problem, more money.............
This is just delaying the inevitable. How is allowing Greece to pile up even more debt, even if the interest rate is somewhat lower, a solution to a problem of too much debt? Talk about fighting a fire with gasoline...
Big shell game, as long as the wall of worry exists you can't "sell the news." They're still playing both sides of the fence by saying it's not final until Greece calls for help. The EU/IMF details are ambiguous, nothing is inked. Obviously they want the credit spreads to contract in the open market without dirtying up "their" balance sheets.
from wiki: At the 2009 G-20 London summit, it was decided that the IMF would require additional financial resources to meet prospective needs of its member countries during the ongoing global financial crisis. As part of that decision, the G-20 leaders pledged to increase the IMF's supplemental cash tenfold to $500 billion, and to allocate to member countries another $250 billion via Special Drawing Rights.[13][14 550B = still plenty of money to throw away
It seems like a plan engineered by the French president since France has the biggest exposure to Greece about 80 Billion Euros. They need the time to hedge against this debt or make some arrangements with the Greek government before the inevitable default, I agree. P.S. I think the EU members just pretend they will give these funds to Greece. They are attempting to "talk down" borrowing cost for Greece.
Wouldn't be surprising. There is so much innuendo and misdirection within the financial community today.