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| Europe |
| Greece, creditors talk to avoid default |
| 2012-01-19 |
| [Iran Press TV] Greece and its international creditors have started a new round of talks to avoid a default by the country, with both sides under increasing pressure to work out their differences. The two sides said little on Wednesday after an over-two-hour-long meeting except that they would meet again on Thursday. Greece has to strike a deal within days to avoid defaulting on the debt when bond redemptions, equaling EUR 14.5 billion (USD 18.5 billion), are due in late March. Greece's debt stands at EUR 340 billion (USD 440 billion) -- a sum, which equals around EUR 31,000 debt per person in the country of 11 million people. The country has the highest debt burden in proportion to the size of its economy in the entire 17-nation eurozone. Investors fear a default could mess with the international financial equation and send the global economy into recession. Greek officials and international bankers have expressed optimism that a deal could be reached in the coming days, despite the fact that talks broke down last week over the issue of the interest rate Greece will offer on new bonds and a plan to enforce investor losses. An agreement with banks and other institutional investors would open the door to a funding deal from the International Monetary Fund and European lenders and help stabilize the markets within the eurozone. "They are working hard to breach differences and they will continue tomorrow," said a source close to the talks. Greece's Prime Minister Lucas Papademos, the country's Finance Minister Evangelos Venizelos, and Charles Dallara, the head of Washington's International Institute of Finance, who is also representing private money lenders at the talks, discussed both the issues. |
| Posted by:Fred |
| #3 "Talk" all you want, but the fees MUST be paid.(Lenders) "We cant" (Borrowers). No good will come of this. |
| Posted by: Redneck Jim 2012-01-19 13:15 |
| #2 Greek sovereign debt of 142% of GDP and 10 year bond rate of 33%. I know which way I'm betting. And US federal debt will exceed 142% of GDP in the third year of an Obama second term. Get ready for a wild ride, whoever is in office. |
| Posted by: Shimble Guelph5793 2012-01-19 12:13 |
| #1 Update See ya in court.. Ooman Rites Court, that is. Hedge Funds May Sue Greece if It Tries to Force Loss Hedge funds have been known to use hardball tactics to make money. Now they have come up with a new one: suing Greece in a human rights court to make good on its bond payments. The novel approach would have the funds arguing in the European Court of Human Rights that Greece had violated bondholder rights, though that could be a multiyear project with no guarantee of a payoff. And it would not be likely to produce sympathy for these funds, which many blame for the lack of progress so far in the negotiations over restructuring GreeceÂ’s debts |
| Posted by: tipper 2012-01-19 00:46 |