IMF report says Greece will need much more debt relief than bailout offers
Source: The Guardian
The severe damage caused to the Greek economy by more than two weeks of bank closures and capital controls means the stricken eurozone country will require far more generous debt relief than is currently on offer from its single-currency partners, according to the International Monetary Fund.
A report by the Washington-based Fund leaked to the news agency Reuters shows that Greeces public debt is likely to peak at 200% of its national income within the next two years, with the risk that the actual outcome could be even worse.
The debt sustainability analysis comes on the eve of a crucial vote in Athens when the prime minister, Alexis Tsipras, will be seeking parliamentary approval for the fresh austerity measures demanded by the eurozone in return for a three-year rescue package worth up to 86bn (£61bn).
Putting into question its involvement in the bailout, the IMF report paints a far darker picture of Greeces public finances than contained in the blueprint released at the end of the marathon eurozone leaders summit on Monday.
Read more: http://www.theguardian.com/business/2015/jul/14/imf-report-greece-needs-more-debt-relief
bemildred
(90,061 posts)And "ping" goes the pin on another grenade.
cstanleytech
(26,809 posts)the repayment timetable to 50 or even 100 years.
Any shorter and it just will cause alot of needless hardship to people.
bucolic_frolic
(45,866 posts)German banks have run the world through families, clones and subsidiaries
since the early 1800s. Probably the result of the end of the Napoleonic Wars.
Thanks, Metternich & Castlereagh
starroute
(12,977 posts)Posterity will ne'er survey
A nobler scene than this.
Here lie the bones of Castlereagh.
Stop traveller, and piss.
Or if that seems like too much of a cheap shot, how about Shelley's "The Masque of Anarchy"?
I met Murder on the way -
He had a mask like Castlereagh -
Very smooth he looked, yet grim;
Seven blood-hounds followed him:
OnlinePoker
(5,793 posts)Of 323 Billion Euros owed before the deal, 246 Billion Euros were owed to the taxpayers of other countries directly or through the IMF. Another 49 Billion Euros is debt to bondholders. Only 17.7 Billion is owed directly to either Greek Banks, Foreign Banks, or the Bank of Greece.
http://moneymorning.com/2015/03/25/how-much-does-greece-owe-4-charts-that-put-greek-debt-in-perspective/
Munificence
(493 posts)"The severe damage caused to the Greek economy by more than two weeks of bank closures and capital controls means the stricken eurozone country will require far more generous debt relief...."
Got nothing to do with those 2 weeks or so.
So they'll just kick the can down the road and bail out the bankers (again -4th time) and be back here with more debt in 6 months and do it again?
Mother fucker can bankers ever lose? Why does our government and the EU always make sure the fucking BANKERS never lose?
Fuck my engineering degree, I should of been a banker.
potone
(1,701 posts)You can sleep at night knowing that you are not part of the forces that are impoverishing the world.
Igel
(35,893 posts)A 107 billion euro debt write-down. It affected private creditors--many of whom were banks--but it didn't affect creditors that were part of the EU "institution", like the ECB.
To put it in perspective, that's about twice the size of the bailout under negotiation. That write-down is pretty good evidence that EU is protecting the EU, not "bankers." It's not bankers vs commoners; it's government vs commoners.
Problem is, this additional shortfall is because somebody played not just kick the can, but "let's upset the whole apple cart." When somebody calls your bluff and meets your call, there's no point claiming that you didn't know it could fail or that it wasn't a stupid blunder. Just one more stupid blunder. You can rail all you want, but it doesn't change one thing.
I keep saying that if Greece were a person, there'd be somebody taking that person to court to have a conservator and guardian appointed. As it is, what's happened is that Greece was told to declare de facto bankruptcy and prepare for something like chapter 11 oversight. First you audit, second you reorganize to stop the hemorrhaging, third you work on restucturing debt.