Eurozone ministers 'back 130bn-euro bailout for Greece'
Eurozone finance ministers have reached agreement on a vital second bailout for Greece, officials involved in the negotiations say.
The deal, which came after late-night talks in Brussels, is said to be worth 130bn euros (£110bn; $170bn).
Athens needs the funds to avoid bankruptcy next month, when maturing loans must be repaid.
In return, Greece will undertake to reduce its debts to no more than 121% of its GDP by 2020.
more: http://www.bbc.co.uk/news/world-europe-17109044
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Now the hard part... implementing the austerity measures without sending Greece even further into a deepening hole.
T_i_B
(14,737 posts)I wonder how long it will be before Greece needs another bailout deal.
dipsydoodle
(42,239 posts)A lot of this will be used just to roll debt over.
They should. as was pointed out here on DU by another a week or so back , have been able to have reduced their defense budget but were prevented from doing so. Their defense budget as a % of GDP exceeds even that of the UK. The reason was apparently a combination of NATO commitments and the fact that there defense requirements are largely purchased elsewhere in the EU. The reduction in the defense budget they sought would've lessened the impacts elsewhere.
DCBob
(24,689 posts)I am thinking there are back room negotiations going on now to come up with some workable, perhaps phased plan, to allow/force/persuade Greece to leave the euro and the EU. I think many are coming to admit that may be the only way to "manage" this mess and keep it from spilling over into the rest of Europe.
dipsydoodle
(42,239 posts)but not the EU which would cause all sorts of issues because of Cyprus.
DCBob
(24,689 posts)What exaclty is the meaning of "Cyprus"?
T_i_B
(14,737 posts)dipsydoodle
(42,239 posts)early sixties I was at college and my best mates were 5 Greek Cyps and and one Turkish Cyp. The largest was the Turk but I still needed to keep them apart at times which wasn't too easy cos I was the smallest. I got away with it because they didn't want me mullered in the middle Situation wasn't helped by one the Greeks being from Famagusta which already in contention and eventually zoned into the Turkish sector.
If I ever refer to "bubbles" its the 4 Greeks I mean - bubble and squeak.
dipsydoodle
(42,239 posts)(Reuters) - Euro zone finance ministers sealed a 130-billion-euro bailout for Greece on Tuesday to avert a chaotic default in March after persuading private bondholders to take greater losses and Athens to commit to deep cuts.
After 13 hours of talks, ministers finalised measures to cut Greece's debt to 120.5 percent of gross domestic product by 2020, a fraction above the target, to secure its second rescue in less than two years and meet a bond repayment next month.
By agreeing that the European Central Bank would distribute its profits from bond buying and private bondholders would take more losses, the ministers reduced the debt to a point that should secure funding from the International Monetary Fund and help shore up the 17-country currency bloc.
But the austerity measures wrought from Greece are widely unpopular among the population and may hold difficulties for a country which is due to hold an election in April. Further protests could test politicians' commitment to cuts in wages, pensions and jobs.
http://uk.reuters.com/article/2012/02/21/uk-greece-idUKTRE81F0EL20120221
Eurozone crisis live: Greece's second rescue package angers Greek opposition.
http://www.guardian.co.uk/business/2012/feb/21/greece-rescue-package-agreed
dipsydoodle
(42,239 posts)Europe is still struggling to avoid the threat of default as investors warned Greece will soon risk violating the terms of its second bailout in three years.
Seven months of negotiations ended in the pre-dawn hours in Brussels with Greece winning 130 billion euros ($172 billion) in aid it needs to avoid a March bankruptcy. Any respite may prove temporary after it signed up to a program of austerity and economic reform aimed at slashing debt to 120.5 percent of gross domestic product by 2020 from about 160 percent last year.
Even with investors and central bankers chipping in to relieve the debt burden, economists from Citigroup Inc. to Commerzbank AG concluded Greece may again fail to deliver amid a fifth year of recession, looming elections and social unrest. The upshot could be the removal of aid and renewed debate over the merits of fresh assistance before year-end as policy makers shift toward doing more to inoculate the rest of Europe from contagion.
The bailout bandage is on, but it wont take much to unravel, said David Miller, partner at Cheviot Asset Management in London. The euro zone has done its best to ensure that Greece will deliver on promises, but there is considerable scope for backtracking on deficit reduction.
http://www.bloomberg.com/news/2012-02-21/greek-rescue-leaves-risk-of-default-alive-in-europe-as-austerity-deepens.html