Germany's Weber :Greece may require financial assistance of as much as €80 billion

Discussion in 'Wall St. News' started by ASusilovic, Apr 19, 2010.

  1. April 19 (Bloomberg) -- Bundesbank President Axel Weber told German lawmakers that Greece may need more aid than the 30 billion euros ($40 billion) promised by the European Union as the government in Athens struggles to push through planned spending cuts, two people present at the briefing said.

    Weber, citing television footage of Greek demonstrators, expressed concern that sections of the Greek population either don’t care or fail to appreciate the seriousness of the situation their debt-laden country faces, the two people said on condition of anonymity because the briefing in Berlin today was held in private.

    The presentation to lawmakers from the Free Democratic Party, a partner in Chancellor Angela Merkel’s coalition, underscores concern over the likely cost of a bailout to euro- area members. Bundesbank spokeswoman Susanne Kreutzer declined to comment on Weber’s presentation.

    “We want as much restraint as possible on this issue” of aid for Greece “because these decisions lie with the Greeks and the Greeks have to take on their responsibility,” Birgit Homburger, the FDP’s parliamentary head, told reporters in Berlin today after the meeting. Greek government commitments “made as part of this deficit procedure have to be implemented.”

    Greek bonds fell today, pushing yields to the highest relative to German bunds since 1998, as debt-crisis talks with the European Central Bank, European Commission and International Monetary Fund were delayed. Greek 10-year bonds yielded 7.64 percent, 456 basis points more than 10-year bunds. The benchmark stock index in Athens slumped 2.6 percent.

    1 bn here or there doesn't matter anymore, or ? :cool:
  2. They should just ask Obama for it. We spend 80 billion for breakfast.