Advertisement

EU Ministers try to agree on latest Greek aid package

Eurozone finance ministers meet later in a 3rd attempt to agree on unlocking a €31 billion t...
Newstalk
Newstalk

09.57 26 Nov 2012


Share this article


EU Ministers try to agree on l...

EU Ministers try to agree on latest Greek aid package

Newstalk
Newstalk

09.57 26 Nov 2012


Share this article


Eurozone finance ministers meet later in a 3rd attempt to agree on unlocking a €31 billion tranche of aid for Greece.

Yesterday the French Finance Minister indicated they are close to a solution for Athens.

The country which is on the brink of bankruptcy has been waiting on the cash since the summer.

Advertisement

Eurozone ministers have held numerous meetings and conference calls over the last 2 weeks to decide how Greek debt could be cut to a more sustainable 120% in 8 to 10 years.

As it stands it is seen at almost 190% of GDP next year.

Without agreement on how to reduce the debt Eurozone ministers and the International Monetary Fund (IMF) do not want to resume payments of loan tranches to Athens even though Greece has met all the conditions because they have no guarantee on whether the need for emergency financing will ever end.

Options available

So far the options for debt reduction under consideration include reducing interest on already extended bi-lateral loans to Greece from the current 150-basis points above financing costs.

France and Italy would like to reduce the rate to 30-basis points while Germany and some other countries insist on a 90 points margin.

Another option is to defer interest payments on loans to Greece from the European Financial Stability Facility (EFSF) by 10 years.

The European Central Bank (ECB) could forego profits on its Greek bond portfolio but not all Eurozone members are prepared to forego their profits with the German Bundesbank among them.

Greece could also buy back its privately-held bonds on the market at a deep discount with gains from the operation depending on the scope and price.


Share this article


Read more about

Business

Most Popular

Live: Title

Now playing

00:00:00 / 00:00:00
Added to queue
Removed from queue

On Air

Share

Share


Up next

Episode title
Show
Duration

You currently have no podcasts in your queue.

Go to podcasts

On Air

Newstalk Breakfast

Newstalk Breakfast

07:00-09:00

Share

Up next

THE PAT KENNY SHOW

THE PAT KENNY SHOW

09:00-12:00

Share

LUNCHTIME LIVE

LUNCHTIME LIVE

12:00-14:00

Share

MONCRIEFF

MONCRIEFF

14:00-16:00

Share

THE HARD SHOULDER

THE HARD SHOULDER

16:00-19:00

Share

OFF THE BALL

OFF THE BALL

19:00-22:00

Share

THE TOM DUNNE SHOW

THE TOM DUNNE SHOW

22:00-00:00

Share

BEST OF NEWSTALK

BEST OF NEWSTALK

00:00-06:00

Share

BREAKFAST BRIEFING

BREAKFAST BRIEFING

06:00-06:30

Share

BREAKFAST BUSINESS

BREAKFAST BUSINESS

06:30-07:00

Share

NEWSTALK BREAKFAST

NEWSTALK BREAKFAST

07:00-09:00

Share

00:00:00 / 00:00:00

Share on