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A MEETING OF the heads of the 27 European Union member state has ended with an agreement on a timeline by which European banks should be capitalised – as talks continue on other major stumbling blocks.
Talks on the debt crisis are reportedly stalled, further delaying the prospect of a comprehensive deal and sparking rumours that the EU leaders may have to meet again on Sunday – for an unprecedented third time in a week.
Reuters reported EU sources which said that talks on the volume of losses to be shouldered by Greek bondholders were likely to result in around €100bn being wiped off Greece’s national debt.
Bloomberg had earlier reported that the talks were stalled – with leaders divided on a draft agreement to enforce a haircut of 50 per cent on Greece’s private bondholders.
CNBC said it understood the deal had virtually been secured, though it reported comments from the Slovakian prime minister who said investors should be prepared to accept an even larger haircut.
Yesterday, Eurogroup president Jean-Claude Juncker had said European leaders would debate haircuts of “between 50 per cent and 60 per cent”.
This evening a statement after the meeting of 27 European government leaders – which was painfully thin on details – did say leaders had agreed to complete a recapitalisation of struggling banks by next summer.
It was left to a meeting of the 17 Eurozone heads of state to continue more specific talks, while the group of finance ministers will be expected to continue the remainder of the talks at a later date.
Earlier today the hopes of a deal had been boosted after Germany’s parliament voted in favour of expanding Germany’s contributions to the bailout fund, which would have given it greater power to lend to struggling economies.
The need for an expanded EFSF has become more pressing since details emerged of a briefing document which stated how Greece was unlikely to be able to return to the money markets before 2021.
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Lucinda creiton has stepped up a gear. She’s realised that threatening us with the ATMs not working mightn’t be enough to frighten us. She was on news earlier threatening us with death – saying we don’t want to end up like Greece with people being killed on the streets!!
Jaysus! I’m shaking in my boots!
Say what you want but those deaths but this year and last were unacceptable on every level
Setting fire to a building and killing bank staff is murder by the protesters.
I agree with you. No one needs to die over this. I think arson is a despicable crime as it puts innocent fire fighters at risk and I definitely don’t blame workers in the bank for this mess.
There was something fishy about the peaceful protesters death last week tho. 400 Greek protesters clashing with other Greek protesters while the riot police were standing by? Surely if they were looking for a good ole row they’d have preferred the riot police.
Yeah I heard her peddling the government spin she was well schooled … I remember hearing those words a few weeks ago somewhere can’t think for the life of me where though !! Complete and utter Nonsense all the same .
She was lucky I was at home watching her rather than standing beside her SHE HAS SOME CHEEK
Greece get a haircut on their debt, the Irish get a tax put on haircuts to pay “their” debt.
Banks baulk at 50% haircut. By way of contrast, like many other retail investors, the last government compelled me to take a 100% hair my Anglo shares.
As a shareholder (owner) of Anglo Irish, you should be paying back all the dividends you got and more to the Irish Taxpayer!!!! Prick!!!
@Michael, are you blaming Adam for the fall of Anglo?
I think he’s saying that as a part owner of Anglo who took a part share in the profit Adam is also liable for a part share in the losses too.
And Adam took his losses so I don’t see what point Michael is trying to make!
Do we the Irish get a haircut on our remaining debt ?? I for one bet we don’t !!!
I just don’t think that decisions should be made in a fearful state. And our government is trying to scare the wits out of us.
FEEL THE FEAR AND TELL THEM TO FECK OFF I SAY.
Excuse my bad language.
Greece wouldn’t, couldn’t, will not, will never pay back…..just debt for life!
It is all TOO much to take in.
The era of the Euro debt serf is approaching.
http://www.marketoracle.co.uk/Article29483.html
Wat are grecce doing with the money?? Where is the money going?? And how many bailouts are they going to need??
They’re spending it on their public sector workers. Nothing wrong with spending money on public sector wages of course, but they don’t collect enough tax to cover the cost so they borrow and borrow until someone eventually points out that they don’t look likely to pay the money back. Then everyone writes off half the debt and they start again. Who picks up the tab for the half written off? First, the shareholders of the banks and other institutions that bought the Greek debt. Then, the taxpayers of the countries of those banks because those countries have to bail out their banks and cover the cost from higher taxes or less spending.
Who needs lucinda with a comment like that. I read a comment re the 2 year old knocked down in china last week saying they’d rather be digging potatoes in the rain than turn into a society that doesn’t care.
I don’t want my taxes going to bail
out banks. I want them going to people in financial trouble. Nor so I begrudge Greece getting a bail out but I don’t think that money they get should be going to bail out European banks that gave Greece cheap money loans. I hate to see the Greek ordinary man and woman suffering for their leaders’ sins.
I’m not a economist but I know how to balance my income and I know that if one if my kids needed more spent on them I’d take it off one of the kids that was better off. And if my Nana needed to go to the doctor I’d have to shave money off some other expenditure.
Decisions should be made on a human level not just an economic one.
Sorry that was for sheelagh
A haircut of any percentage on sovereign debt is not a panacea for Greece’s woes and it certainly wouldn’t be for Ireland. Sure it would save the state a bit of money but it has a direct impact on banks and other financial houses (insurance companies etc). These financial institutions no matter what the rethoric on this site says provide an important function in any state and employ thousands of people,this write down will have a direct impact on them. In any case debt is recognised to be perpetual anyway and no state will fully pay off their debts. Irelands approach thus far has been correct, of our ultimate goal is to return to the markets next year and regain some of our economic independence then we must be able to demonstrate to the markets that we are responsible and serious about paying debt. Greece won’t be returning to the money markets for a very long time!!!
@Barry it is never acceptable
Worst part of all this is that Lucinda Creighton might be nearer the truth than we want to believe. The writing is on the wall for some time now and we just could wake up some morning to nothing in the coffers, ATMs or anywhere else and then the rioting will surely be on the cards!
There was cash in the ATMs before the euro and there will be after it.
Loss of our money supply and interest rates has left us in this position.
Granted, debt ballooned on property sales but it ballooned on essentially a foreign currency that is now causing these debt problems. We can’t just devalue as you would before.
The euro needs to go as a one size fits all doesn’t work across diverse economies.
Sorry my “who needs lucinda … ” comment is for you sheelagh
have your say