Greece :Ruinous Picture
Archives of “greece” tag
rssGreece bailout package 'agreed by Germany and France'
The deal will also involve the International Monetary Fund and is expected to include 22 billion euros of funding for Greece, sources said.
It is now up to European Union President Herman Van Rompuy to call a summit of eurozone leaders possibly later tonight to consider the French-German deal, after talks attended by all 27 European Union heads of state.
The meeting would ask Van Rompuy to draw up detailed plans “before year end to show all the options possible” for bailing out eurozone nations in future. That would include preventive measures and sanctions, a diplomat said.
Spanish government spokeswoman Cristina Gallach said she could not confirm any deal but that Spain – which heads most European Union talks because it holds the EU’s rotating presidency – was “hopeful” that a solution could be found at the talks for Greece’s debt woes.
Controlled vs Uncontrolled Defaults
If I borrow £1,000 from you and then, because of spectacular bad luck cannot pay it back, but I come to you and say, “here is £750, can we call it quits?” – that is a controlled default. If I borrow £1,000 from you and you ring me up and you get directory inquiries in the Dominican Republic – that is an uncontrolled default. Right now, Greece’s fate hangs in the balance somewhere between these two. |
Euro Last Support or Hope :136
Last week ,The epicenter of many of questions seems to be southern Europe, where Greece, Portugal, Spain and to a lesser extent the remainder of the so-called PIIGS (Portugal, Italy, Ireland, Greece and Spain) have flamed investor concerns that burgeoning public debt may significantly weaken investor demand for sovereign debt and exacerbate an already trouble budgetary crisis.
Many investors have taken to selling the euro is as a means by which to reduce exposure to these problem areas and/or speculate on one or more of these crises spiraling out of control.
-Just look at above chart :Weekly chart includes a powerful rally of Year 2009 and more recently and two-stage selloff, starting in the first half of December and picking up steam over the course of the past 3 ½ weeks as traders looked to capitalize on weakness stemming from the problems in Greece, Portugal and Spain.
Just watch 136 level.Three consecutive close below this level+ Weekly close will take to 131.70-130 level.
-If not breaks 136 & trades above 138 level will create buying upto 140-141 level.
-Best Strategy :Sell on Rise.
-Will update more very soon.
Updated at 13:10/8th Feb/Baroda
Greece won’t last beyond November without aid, says PM
Greek Prime Minister Antonis Samaras has signalled that his country could not survive beyond November if it isn’t granted the next tranche of bailout aid.
Samaras highlighted that the most important thing for Greece is liquidity and underlined the necessity of the international financing.
When questioned in the Handelsblatt interview how long Athens could survive without additional help he answered: “Until the end of November, then the cash box will be empty.”
Samaras also felt that the European Central Bank (ECB) could help out by accepting lower interest rates on Greek bonds and rolling over the debt at maturity. However, ECB President Mario Draghi ruled out the idea, because he considers it to be “monetary financing”.
In an International Herald Tribune conference held in Paris, Samaras also warned that a Greek exit from the euro would be “disastrous” for the Eurozone and could slash the Greek standard of living by up to 70%.
German Finance Minister Wolfgang Schäuble gave some show of support stating that countries with problems should be allowed more time to reform but he did lash out at Greece by stating that all the other Eurozone states had made good progress on their austerity measures. He did however admit that Athens is in a “difficult situation”.
Greece bans shortsellers
Greece’s securities regulator banned short-selling on the Athens stock exchange from today until June 28, according to an e-mailed statement from the Hellenic Capital Markets Commission today.
Updated at 15:02/28th April/Baroda
Greece – About to Hit the Panic Button?
Well it would appear that all the talk of the European Union and the IMF standing at the ready did not calm the markets when it was being discussed over the past month. It was hoped that the markets would be calmed if they knew that Greece had support from its neighbors.
That was Plan A, now it is time for Plan B, or C, D, E…
The Greek government’s cost of borrowing has hit a new high as talks on a joint eurozone and International Monetary Fund (IMF) rescue plan begin.
The interest rate on 10-year government bonds hit 8.3% – the highest since the euro was introduced.
Rates rose as it became clear that talks over the aid package may not be finished until days before a multi-billion-euro loan is due for repayment.
Investors are becoming more convinced that Greece will need to be rescued.
Greece’s finance ministry said the talks with the European Commission and the IMF would take about two weeks, with a joint text issued on about 15 May. […] (BBC)
It would appear that Greece is about to hit the button
Wednesday, April 21, 2010 1:27:13 PM
Greece Fin Min: Will make decision on whether or not to trigger the aid mechanism soon – Notes that the IMF will have discussions over the competitiveness of the country. No further austerity measures this year are likely.
UK And US Among Top 5 Weekly Sovereign Deriskers
The week’s biggest (sovereign) CDS movers have been released, and we have some new entrants in the most endangered species list. While by now nobody will be surprised that the UK is a consistent top 2 player (coming in this week with $319 million in net notional derisking, this making it the 8th week or so the country has made the top 3), only behind Italy and its $452 million in net notional, and just in front of last week’s #1 Brazil, the presence of the United States at #4 should be a little unsettling. It has been months since the US appeared in the top 5. And just like in the long gold case, the same types of existential questions once again arise when the interest in US CDS picks up: who gets to pay off your contracts in the case of an event of default? Elsewhere, the presence of Korea and Turkey (or Australia) in the top 10 should not come as too surprising. On the other end, short covering was violent in CDS of Spain, Hungary and Portugal – Europe’s newest lepers. Is the CDS community concerned the EU can actually pull out a rabbit out of the hat that actually works for once? Hardly. The top 10 reriskers also saw the inclusion of France and long-forgotten insolvent Greece.
ECB Purchases Of Sovereign Bonds Surge Tenfold Compared To Prior Week, Hit €1.4 Billion
After dropping to a modest €134 million last week, ECB purchases of sovereign debt exploded tenfold in the last ended week to €1.384 billion, confirming that the ECB continues to bid up all Portuguese and Irish bonds available for sale, so the market does not crash. As Reuters notes, this is the highest weekly amount purchase since early July. Once again it is up to the European Fed-equivalent to be the buyer of only resort. And Europe’s continued central bank facilitated life support comes on the heels of the latest joke in recession timing: per Dow Jones, the Center for Economic Policy Research Monday said its Euro Area Business Cycle Dating Committee had determined that the currency area’s recession began in January 2008 and ended in April 2009, lasting a total of 15 months and reducing gross domestic product by 5.5%. Some recovery there, when half the PIIGS have no access to capital markets, have their Prime Ministers mocked during conference calls, and are fighting with an exchange rate last seen long before Greece, Portugal, Spain and Ireland had to be rescued. We wonder what the CEPR’s timing on the end of the European depression will end up being?
