Greece seeks urgent Bridge financing

wotsthat

http://www.bbc.co.uk/news/business-20311701

Looks like they've made it beyond the weekend...

The Greek government has managed to sell 4.06bn euros ($5.15bn; £3.24bn) of treasury bills, which are very short-term bonds.

It sold the one-month bills at an interest rate of 3.95% and the three-month bonds at 4.2%.

The money is needed to cover 5bn euros of old treasury bills, which are due for payment on Friday.

Greece needs to raise the money this way because it has not yet received the next tranche of its bailout loans.

Conrad

Graham_Devon wrote: »

Considering the cuts needed for the austerity package to work, I really don't see how they can actually implement them. Were talking 15% penson cuts. Further wage cuts accross the board. Removal of holidays from workers.

Graham I sense some people believe the Greeks are entitled to more than they can produce. This whole mindset is all wrong.

Thrugelmir

Conrad wrote: »

Graham I sense some people believe the Greeks are entitled to more than they can produce. This whole mindset is all wrong.

I'm sure the peasant farmers in China would live a European standard of living.

In the recent past we seem to have lost sight of the fact that we have to work for entitlements not be gifted them.

pqrdef

wotsthat wrote: »

Then once they've defaulted they can start getting emergency aid.

They'll need loans for economic reconstruction. So who are they going to call?

The troika has a simple choice. It can prop Greece up or throw it to the wolves.

But it seems to be doing its best to do both.

vivatifosi

pqrdef wrote: »

They'll need loans for economic reconstruction. So who are they going to call?

The troika has a simple choice. It can prop Greece up or throw it to the wolves.

But it seems to be doing its best to do both.

Can't give a link, as I've forgotten where I've read it, but came across something that implied that there were cracks in the troika. Essentially the EU taking a political stance and the ECB taking a more financial stance and starting to lock horns. A big part of this is not only the EU standing firm, but the troika standing as one. Thinking about it, perhaps it is most logical that this is where the cracks would show first.

vivatifosi

ECB's Weidmann says haircut needs to be earned, not given:

http://uk.reuters.com/article/2012/11/16/uk-ecb-weidmann-bondbuys-idUKBRE8AF1L620121116

paso11

What could possibly go wrong now?

Graham_Devon

vivatifosi wrote: »

ECB's Weidmann says haircut needs to be earned, not given:

http://uk.reuters.com/article/2012/11/16/uk-ecb-weidmann-bondbuys-idUKBRE8AF1L620121116

In that article, it's stated that a haircut now, would basically buy another 10 years (and that it's not wanted because we'll just end up in the very same situation).

Sounds a little scary to me, as so many will see that 10 years as a good thing.

All I can see is no matter how much money thrown at Greece, no matter how many bailouts, haircuts, no matter how much austerity etc.....the debt to GDP ratio just keeps getting higher.

By the end of 2013 it's projected to be 190% (up from 180% now and 172% last year if I recall correctly). The aim when all this started was to have it nearer 120% by now. It just keeps on growing, and we just keep buying more and more time to deal with it.

Maybe they will start looking at how to change the figures next? All I do know is this increase GDP debt ratio isn't going to be solved by austerity as the main component to the figure is interest on it's loans, and they just keep on increasing.

I'm honestly starting to believe were playing a long drawn out game, a game we may not even be half way through of "not on my watch". No one wants to be the person who goes down in history as letting it fall over. The same is happening right now in the US, with Barack putting the pressure on suggesting it will all be someone elses fault if the US falls off the cliff....can they live with that? Will they let themslves be the party seeking election next time round to be the party that pulled the plug and made Americans poorer?

This "not on my watch" mentality could be going for years. I honestly thought for instance the tories would do something different...but they have done exactly the same as labour would have! They've spent more time and money on tinkering with the benefits system than they probably have saving cash on it....meanwhile more and more people sign up for a slice of the pie!

ILW

Thrugelmir wrote: »

I'm sure the peasant farmers in China would live a European standard of living.

In the recent past we seem to have lost sight of the fact that we have to work for entitlements not be gifted them.

Why does the average Greek (or any other European) think they are entitled to a higher standard of living than an average African or Chinese say?

Surely it needs to be earned.

Graham_Devon

Well this is a turn up for the books.

The talks on the bailout for Greece has broken down, for the second time in a row, meaning Greece will not be getting the bailout money hoped for by the time they had planned.

The failure of eurozone ministers to reach a deal to give Greece its latest bailout payment threatens the whole bloc, leaders have said.

Following nearly 12 hours of talks in Brussels, the Eurogroup said it needed more time for technical work.

Greek Prime Minister Antonis Samaras said: "It's not only the future of our country, but the stability of the entire eurozone [that is at stake]."

France's finance minister insisted they were a "whisker" away from a deal.

The chairman of the Eurogroup, Jean-Claude Juncker, said ministers would meet again next week.
"Greece did what it had to do, and what it had pledged to do... whatever technical difficulties in finding a technical solution do not justify any negligence or delay," Mr Samaras said.

Greece needs the next tranche of its second bailout worth 130bn euros ($166bn; £104bn) to avoid insolvency.

The sage just seems to go on and on. I read last night on the BBC that they were trying to extend the debt payments into 2032 now, alongside haircuts on ECB funds and the bailout funds (but not IMF funds).

How they think they will get Greece's debt down to 120% of GDP by 2020 is beyond me, and maybe that's the sticking point now.

The IMF it seems also wants other European countries to start realising losses on their loans to Greece, in order to give more debt to them. Again, I don't know how this would work....as countries are expected to forego the repayments of what's already been lent, but lend more. The IMF seems to reject more can kicking, and want to see debt forgiveness in order to see debt reduction. Of course, Germany etc are against this, and want to see extensions...but that extension will also call for more debt, as the cost rises with every extension.


http://www.bbc.co.uk/news/business-20423684