Greek haircut under review, no new euro zone aid until November

Discussion in 'Wall St. News' started by ASusilovic, Oct 3, 2011.

  1. (Reuters) - Euro zone finance ministers are reviewing the size of the private sector's involvement in a second international bailout package for Greece, a move that could undermine the aid program and hasten the threat of a Greek default.

    Ministers also agreed after a meeting in Luxembourg that Greece could wait until mid-November until it receives the next installment from its existing emergency aid program, piling more pressure on Athens to tackle its debt problems.

    Jean-Claude Juncker, the chairman of the Eurogroup ministers, said they were reassessing the extent of the private sector's role in the planned second package for Greece, a centerpiece of the deal struck on July 21 to rescue Athens.

    Under that deal, private creditors agreed to take a 21 percent write-down on their holdings of Greek debt via a plan to lighten the debt burden. Now that Greece's economic growth and deficit situation has worsened, that deal needs to be reviewed.

    "As far as the PSI (private sector involvement) is concerned, we have to take into account the fact that we have experienced changes since the decisions we took on the July 21, so we are considering technical revisions, so yes," Juncker told reporters, although he would not elaborate.

    No 2 trillion EUR bazooka. No money for Greece. Nada. Niente. Nichts. Nothing. Thank you, Mr. Schäuble.
  2. Is that 21% from current values, or from original values? Because if it's the latter, that's one sweet payday for anybody buying at these levels.
  3. meeting after meeting after meeting aftermeeting after meeting after meeting after meeting after meeting after meeting after meeting

    this lot have not got a clue.

    expect imminent greek official default and entire eurzone chaos.
  4. Schauble is like a deer in the headlights.