Greece get's bailout, alongside 20% debt reduction

Graham_Devon

And the bailout could now be called off..

From one crisis to the next...

The International Monetary Fund said on Thursday that it would not disburse funds under its part of the EU-IMF package unless the eurozone delivers on a bond "buy-back" scheme, which is supposed to cut Greece’s burden by 10pc of GDP and is deemed crucial for restoring long-term viability.

If the IMF withdraws, Finland and Holland will also pull out of the programme. "This has become a really big problem," said Raoul Ruparel from Open Europe.

The dispute comes as Moody’s said the EU-IMF deal to unlock €44bn in bail-out payments to Athens merely papers over cracks and does little to alleviate Greece’s "extreme economic and social fragility".

"We believe that the country’s debt burden remains unsustainable," it said. Moody’s warned that there can be so lasting solution until EU states and official creditors agree to write down their holdings, now the lion’s share.

Private investors are furious at demands that they take a second "haircut" of 70pc on residual holdings, after already taking a 53.5pc loss earlier this year, while official creditors still refuse all loses.

Graham_Devon

Just listened to a bit about this.

Apparently the bond buyback programme will be a success.

That does not mean it will be a success. Rather it can't be anything but, as it's been setup in a way that the IMF can claim it to have been a success as no real plans or targets were put in place. I.e. it's just another political thing...the IMF can say they did X, Y and Z, as they said they would, and can now give the money.

In reality, apparently, it means very little, and will be deemed a success regardless.

Apparently it's the agreement for ahaircut that's needed, not for the hairbut to take place, as the IMF needs a figleaf to cover their modesty as they find themselves naked.

Graham_Devon

Well, Greece didn't manage to complete their bond buying programme by the deadline.

Therefore, the deadline has simply been extended.

Eellogofusciouhipoppokunu

Graham_Devon wrote: »

Well, Greece didn't manage to complete their bond buying programme by the deadline.

Therefore, the deadline has simply been extended.

You talk as though you're personally affronted by all this.

What difference does it make to you? Are you heavily invested in Greek bonds?

Mr._Pricklepants

Eellogofusciouhipoppokunu wrote: »

You talk as though you're personally affronted by all this.

What difference does it make to you? Are you heavily invested in Greek bonds?

Any Euro troubles spilling over to the UK economy could be the trigger for his eagerly awaited triple dip.
He'll be able to tell us all "told you so" and score a couple of forum points and get a thanks from shorty, desperate prof and rewired.
So yes, he's heavily invested I'd say.

Eellogofusciouhipoppokunu

Mr._Pricklepants wrote: »

Any Euro troubles spilling over to the UK economy could be the trigger for his eagerly awaited triple dip.
He'll be able to tell us all "told you so" and score a couple of forum points and get a thanks from shorty, desperate prof and rewired.
So yes, he's heavily invested I'd say.

Can he spend 'forum thanks'? He seems to be correct so many times with his forecasts and predictions* that he should surely be making money with them?

* Though all of these forecasts/predictions are made in hindsight with no documentary proof - which is amazing considering he has made over 50,000 posts over a 6 year period. Perhaps MSE has to delete his forecasts in order to protect the markets from the inevitable crash that would occur when they become public? I hear that the BoE has first sight of his posts by arrangement with Martin Lewis.