Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
TALKS BETWEEN the Greek government and the holders of its bonds have stalled and are reportedly on the verge of total collapse, it is reported this evening.
Representatives of the private bondholders – who are expected to take a 50 per cent hit on the value of their investments, if Greece is to avoid a total default – said the talks had “paused for reflection”.
The Financial Times reported a more drastic event, however, saying the talks had collapsed altogether – making it more likely that Greece’s second bailout may need to be revised.
Its report said the talks had broken down entirely after Greek negotiators demanded a haircut even greater than the 50 per cent target – an outcome which private investors were not prepared to tolerate.
The talks had been conducted between Lucas Papademos, the Greek prime minister, and the finance minister Evangelos Venizelos. They were in talks with the Institute of International Finance, which represented private bondholders.
An IIF statement issued afterward said that “unfortunately, despite the efforts of Greece’s leadership, the proposal put forward… has not produced a constructive consolidated response by all parties, consistent with a voluntary exchange of Greek sovereign debt.”
Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach.We very much hope, however, that Greece, with the support of the Euro Area, will be in a position to re-engage constructively with the private sector with a view to finalising a mutually acceptable agreement on a voluntary debt exchange…
AP cited senior Greek government officials who said the talks would resume on Wednesday.
Without a deal – which aimed to reduce Greece’s national debt by a whopping €100 billion – Greece will probably require a larger bailout, including greater cash payments, if it is to avoid a full-blown ‘disorderly’ default.
This is itself made more complicated by the prospect of France being downgraded – because this will also mean a downgrade for Europe’s bailout fund, and reduce its effective lending capacity.
To embed this post, copy the code below on your site
Jesus…and we thought we were bad!
Give it a week and we’ll be the same.
We are, they are just better than us at fecking up their economy, don’t worry we will catch up with them soon, sure once we don’t have another potato plight we can just struggle on, it’s not like a modern country needs a functioning banking system
Bail out 3 the final frontier ?
A journey where no country has gone before
Poor ikkle bondholders
We aint seen the worst yet. The euro crisis will not end without a major write down of public and private debt. This in itself will not be without alot more pain to the current system.
And the NTMA/Government hoping to return to the markets this summer?
I sincerely hope that they know what they are doing unless the UK are going to back us on the back of the several meetings yesterday and today.
The apple Market is open on Fridays on Waterford I believe that and the black Market are about the only ones open for a long time to come then when asked why we are still out next year we will be told that Market conditions outside our control won’t allow us back and they mess they inherited was worse than they believed.
That “can ” that everyone was kicking done the road looks like a big fat deadend is ahead.
Time for a 2 nd can
Reality bites the beginning of the end .. At long last !!!
Think the plan was always to kick the can down the roams until the banks were able to absorb Greece leaving the euro,
Oh yes my fellow Irishmen liberation is in the post. We will suffer but we will be the holders of our own destiny. It proves to me that we were not the only creators of our own problems. We went mad with money but those in the european institutions were all too happy to cash in on our drunkedness. Now they too will have to suffer the hangover.
have your say