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GreekReporter.comGreeceFinancial Times Front Page Article Discusses Unprecedented European Intervention in Greek Economy

Financial Times Front Page Article Discusses Unprecedented European Intervention in Greek Economy

According to a front page article on the Financial Times, ”European leaders are negotiating a deal that would lead to unprecedented outside intervention in the Greek economy, including international involvement in tax collection and privatization of state assets, in exchange for new bail-out loans for Athens.”
The package would also include incentives for private holders of Greek debt voluntarily to extend Athens’ repayment schedule, as well as another round of austerity measures,  said people involved in the talks.
Officials hope that as much as half of the €60 bn-€70 bn ($86 bn-$100 bn) in new financing needed by Athens until the end of 2013 could be accounted for without new loans. The sale of state assets and the change in repayment terms for private debtholders could cover much of this financing.
”Eurozone countries and the International Monetary Fund would then need to lend an additional €30bn-€35bn on top of the €110bn already promised as part of the bail-out programme agreed last year”, is also mentioned in FT.
Officials warned, however, that almost every element of the new package faced significant opposition from at least one of the governments and institutions involved in the current negotiations and a deal could still unravel.
Moreover, European Central Bank remains opposed Greek debt restructuring, while European official involved in the negotiations said tha ECB’s rejections could change if reprogramming of Greek debt would be structured carefully.

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