Eurozone Greek bailout talks begin in Brussels..bailout approved..till the next time
Eurozone finance ministers are holding talks in Brussels aimed at securing a second vital bailout for Greece.
They have said they are hopeful of reaching a deal, with France’s Finance Minister Francois Baroin saying all the elements are in place.
But his Greek counterpart Evangelis Venizelos said haggling would go on “until the very last minute”.
Athens needs the 130bn euros (£110bn; $170bn) in order to avoid bankruptcy next month, when loans must be repaid.
The rescue plan would also write off 100bn euros of debt, with private lenders accepting a 70% reduction in what Greece owes them.
In return, they would receive cash and new bonds, expected to mature in 30 years’ time.
Negotiations to write off even more debt are being held in parallel in Brussels between Greek officials and their international lenders on the one hand, and bank chiefs on the other, say officials.
In Brussels, finance ministers from the 17 eurozone countries were meeting and appeared to be on the verge of approving a $160 billion deal.
Greece has so far struggled to convince European Union members that it would put in place austerity measures in return for the cash.
An easing of monetary policy in China on the weekend also added to the positive mood amongst investors.
In London, mining shares rallied on the prospect of increased demand from China.
Insurers’ and banks’ exposure to Europe’s sovereign debt crisis also pushed those stocks ahead in anticipation of a deal being struck to rescue Greece.
A meeting to decide whether Greece will receive a crucial bailout is dragging into the early morning in Brussels.
The eurozone is expected to throw the beleaguered country a new lifeline after tightening the conditions behind the bailout, but eurozone finance ministers still have not arrived at a deal as of 2am (12pm AEDT).
Greek prime minister Lucas Papademos is attending the meeting, where the Greek government expects the go-ahead from its euro partners on the 230 billion euro ($280 billion) package.
His finance minister Evangelos Venizelos said Greece sees “a long period of uncertainty coming to a close today, a period that benefited neither the Greek economy, nor the euro area overall”.
“We have all the elements for an accord,” French counterpart Francois Baroin said after six months of wrangling that saw eurozone hardliners’ patience with Greece almost snap and suggestions that Athens be cut adrift.
After much debate, euro nations are nearing the point where they can finally agree on a writedown of privately-held debt worth 100 billion euros ($120 billion) as well as guarantees and loans eventually adding up to another 130 billion euros ($160 billion).
THE long-awaited deal on a rescue plan for Greece still leaves Athens with a huge debt burden and implementation challenges that threaten to derail the program and prevent the country’s return to growth after several years of a devastating recession that has spurred social upheaval and political uncertainty.
Eurozone finance ministers yesterday agreed on a 130 billion ($161.3 billion) plan that would have Greece’s private creditors take a larger loss than previously agreed, aimed at putting the debt-laden country on solid footing to avert a catastrophic default.
its all fixed..rejoice and fill the streets with joy..not quite..they are still well and truly in the spotlight..and even if by some fluke they got to 120% of GDP by march 23..who is next?..portugal? spain?..or a smaller one?