Greek Debt Negotiations Break Down

by Marilou Long on January 24, 2012

in Banks,Credit Crisis,Foreign Markets,Geopolitical

Private holders of Greek debt have not been able to reachon restructuring the terms of their Greek debt holdings.  They hold 60% of the outstanding debt, and they don”t want to accept a new rate less than 4% on those holdings.  The EU wants the private debt holders to voluntarily take about a 50% haircut.  From the linked WSJ article:

Austrian Finance Minister Maria Fekter said she”s “not pleased” with progress
so far. “We”re sending a very direct message to Greece that the community
expects more, also in terms of structural reform,” she told reporters. “We”re
not pleased and only when there”s a written message on the table in front of us,
can further assistance be discussed.”

Ms. Fekter said she wanted a written pledge from Greece”s political party
leaders that they were all committed to implement austerity plans.

Swedish Finance Minister Anders Borg also had tough remarks for Greece,
saying that “when it comes to structural and fiscal reform they have not
delivered.”

Greek Finance Minister Evangelos Venizelos acknowledged there have been
slippages in the implementation of austerity measures that Greece has agreed
with its euro-zone peers and the IMF as part of its original bailout program.

I love the term “slippages” in the paragraph above.  Greek politicians talk just like American politicians!

Leave a Comment

Previous post:

Next post: