February 20, 2012
How are the European leaders helping Greece?
The 17 members of the euro currency bloc were expected to put a lending facility of €130bn (£108bn) on the table, in addition to the €110bn lent over the last two years.
These loans will replace ones previously offered by foreign banks, which have refused to lend Greece more money. Non-euro nations in the broader 27-strong European Union, including the UK and Sweden, have turned their back on Greece.
What about a helping hand from the private sector?
Banks that lent Greece funds over many years have accumulated €205bn of outstanding loans, packaged as bonds of varying maturities. In total, the Greek state has €350bn of debts. A major grouping of banks, led by Deutsche Bank, have agreed to swap their holdings for new 30-year bonds and accept a 70% loss in the process. This will bring down Greece's debt-to-GDP ratio from 160% to a still scarily high 130%.
More
No comments:
Post a Comment