February 20, 2012
European governments moved toward a second rescue of Greece, calculating that the 130 billion-euro ($172 billion) cost of a fresh bailout is a price worth paying to prevent a default that could shatter the euro area.
Finance ministers are weighing the terms of new loans to Greece and a possible contribution by central banks at a meeting today in Brussels. They also aim to start a bond exchange with private investors meant to stave off a Greek bankruptcy next month.
Bondholders’ response to the swap, Greece’s ability to prolong two years of austerity and a gantlet of parliamentary approvals in northern European countries gripped by an anti- bailout mindset loom as risks to the latest salvage operation.
“We still have a bit of work to do,” German Finance Minister Wolfgang Schaeuble told reporters as he arrived for the meeting of euro-area finance chiefs. “We’ve set out to wrap up the decision on a new aid program for Greece. I’m confident.”
No time was set for a press conference after the meeting, under way since 3:30 p.m.
Euro leaders point to declining bond yields in Italy and Spain as evidence that investors are less fearful that the turmoil in Greece, representing 2.4 percent of the continental economy, will spill across borders.
The 17-nation euro gained as much as 1 percent to $1.3277 today, bringing its climb against the dollar this year to more than 2 percent. European stocks rose, with the Stoxx Europe 600 Index (SXXP) extending a six-month high.
More
No comments:
Post a Comment