Friday, November 17, 2017
 
 
News: Page (1) of 1 - 10/11/11 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook
Greek debt inspectors complete review
Debt inspectors complete review, say payout of next bailout tranche likely in early November
By The Associated Press

ATHENS, Greece (AP) ' Greece's international debt inspectors have completed their review of the government's reforms, and that if its conclusions are adopted by the eurozone and IMF, the country is likely to receive the next batch of its bailout loans in early November.

The inspectors from the International Monetary Fund, European Commission and European Central Bank, collectively known as the troika, said Tuesday that Greece's deficit targets for 2011 were "no longer within reach," but that additional measures announced were adequate for 2012. They said additional measures would be needed for 2013-2014.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.



VIENNA (AP) ' The eurozone debt crisis has reached a systemic dimension that threatens banks and the wider economy, European Central Bank president Jean-Claude Trichet warned Tuesday, as Greece awaited approval of bailout loans it needs to avoid bankruptcy.

Trichet said "the crisis has reached a systemic dimension" and spoke out strongly in favor of boosting the continent's banks' health with new funds to weather the sovereign debt crisis.

Speaking as head of the eurozone's new risk-watchdog, the European Systemic Risk Board (ESRB), he told a European parliament Committee in Brussels that market fear about government debt has spread to capital markets around the world and is drying up bank funding.

"The banking sector in Europe needs recapitalization, that is part of our message," Trichet said.

Now "it is a matter of urgency" that governments move "decisively to tackle" the crisis, he added. "The high interconnectedness in the EU financial system has led to a rapidly rising risk of significant contagion."

Trichet's warning came as Jean-Claude Juncker, prime minister of Luxembourg and head of eurozone finance minister meetings, said Greece's bondholders would have to take sharp writedowns.

He was quoted late Monday by Austrian state broadcaster ORF as saying that eurozone countries are "talking about more" than a 50 to 60 percent haircut for Greece, though his spokesman later corrected his statement to say he meant more than 21 percent.

Experts and investors believe Greece's debt situation is untenable, even with more reforms and austerity measures, and will need to write off some of the money it owes bondholders.

Greece's second bailout, which was agreed in July but has yet to be finalized, proposed a 21 percent cut in bond repayments. Economists, however, say a 50 percent reduction would be necessary.

In the near-term, Greece depends on regular installments of bailout loans, but whether it gets the next euro8 billion ($10.9 billion) will depend on a review of its reforms by international debt inspectors to be wrapped up on Tuesday.

The International Monetary Fund, European Central Bank and European Commission are checking whether Greece has done enough to qualify for the next batch of its vital international bailout loans. Without them, the country will run out of money to pay pensions and salaries by mid-Novemeber and could be unable to repay bondholders in December.

As the debt inspectors concluded their talks, protests caused more disruption in the capital.

Workers at a key refinery went on strike, sending motorists who feared a fuel shortage to form huge lines at gas stations to fill up. A strike by municipal workers has left garbage piling up in in mounds on city streets for days. Protesters have also staged sit-ins of state buildings, including those of the water company.

Greece has been locked out of the international bond market for more than a year due to the high interest rates demanded for its bonds, but regularly issues short-term treasury bills.

The country raised euro1.3 billion ($1.8 billion) on Tuesday in the auction of 26-week treasury bills at an interest rate of 4.86 percent, marginally higher than the 4.8 percent yield in a similar sale on Sept. 6, the debt management agency said.

Demand was also slightly lower, with Tuesday's sale 2.73 times oversubscribed compared to 3.02 times in September. The country had initially been seeking to raise euro1 billion.

___

Becatoros contributed from Athens. Juergen Baetz in Berlin and Gabriele Steinhauser in Brussels also contributed to this report.


Page: 1


 
 
 
 
 
 
 
 
 
 
 





Our Privacy Policy --- About The U.S. Daily News - Contact Us - Advertise With Us - Privacy Guidelines