Showing posts with label Debt crisis. Show all posts
Showing posts with label Debt crisis. Show all posts

Wednesday, November 23, 2016

RPT-INSIGHT-Euro zone nations turn to hedge funds to meet borrowing needs

Tue Nov 22, 2016 | 2:00am EST

Reuters

(Repeats story published on Monday)

* Belgium, Italy and Spain see spike in hedge fund take-up

* Bankers warn trend could exacerbate market volatility

* Risks stir memories of euro zone's sovereign debt crisis

* Long-dated bonds sustain heavy losses in recent sell-off

By Abhinav Ramnarayan and Helen Reid

Friday, November 18, 2016

Who rules? Euro zone budget tensions surface

Thu Nov 17, 2016 | 11:51am EST

Reuters

By Alastair Macdonald and Jan Strupczewski | BRUSSELS
Berlin's brusque "Nein" on Thursday to a call from Brussels for it to loosen its budget to help the euro zone's struggling south exposed tensions over who should control the currency union and police its rules.

Wolfgang Schaeuble, whose German finance ministry rejected the European Commission's call for it to spend more, went public last month to say the EU executive had become too "political" to act as impartial enforcer of euro zone fiscal rules and should hand the role to a new supervisor.

Wednesday, November 16, 2016

Obama Urges Europe to Address Its Debt Crisis

Leaders should favor growth over austerity in response to rising populism, president says

The Washington Post

By CAROL E. LEE and  NEKTARIA STAMOULI
Updated Nov. 15, 2016 12:14 p.m. ET
123 COMMENTS
ATHENS—President Barack Obama urged Europe to resolve lingering issues from its debt crisis, saying on Tuesday that leaders should favor growth over austerity, as part of their response to the rising populism in Western countries exemplified by the election of Donald Trump.
Mr. Obama made the appeal after meeting with Greek Prime Minister Alexis Tsipras, who said it is time for Greece to receive significant debt relief from Europe.

Obama Keeps Hope Alive for Crisis-Ridden Greece

Bloomberg

 Marcus Bensasson

 Eleni Chrepa

16-11-2017

When a U.S. president last visited Greece, the economy was booming, Athens had been awarded the Olympics and the country was preparing to join the euro.
That was in 1999, and as Barack Obama gives his keynote speech on Wednesday defending democracy in its birthplace, the spotlight will inevitably fall on Greece’s deterioration. Its journey to the brink of bankruptcy, dragging down financial markets worldwide, was among the defining international events of Obama’s eight years in office and few places better show the ensuing forces of populism that ultimately brought in Donald Trump to replace him.

Monday, November 14, 2016

Barack Obama calls for 'meaningful debt relief' for Greece

US president says it is in world’s interest for Greece to stay in eurozone and praises EU as ‘one of greatest political and economic achievements of modern times’

The Guardian

The US president, Barack Obama, has signalled he will use a critical two-day visit to Athens this week to step up calls for the country to be given “meaningful debt relief”.

Weighing in on the potentially explosive issue of how best to revive the European Union’s most financially strained member state, the outgoing president said debt forgiveness would play a pivotal role in giving people hope. “I am a strong believer that to make reforms sustainable, people need hope,” he told the Greek newspaper Kathimerini before the trip, which will be his final state visit before leaving office. “The International Monetary Fund has said that debt relief is crucial to put Greece’s economy on a sustainable path and set the stage for a return to prosperity.”

Thursday, November 10, 2016

Greece to ease capital controls soon, needs debt measures: Stournaras

Thu Nov 10, 2016 | 5:50am EST

Reuters

By George Georgiopoulos and Balazs Koranyi | ATHENS
Greece will soon ease capital controls further but full liberalization will depend on progress in easing the country's debt burden, which is also a precondition for entering the ECB's asset buying scheme, central bank chief Yannis Stournaras said.

Propped up by three successive bailouts, Greece hopes to emerge from a long recession next year. But much of its outlook depends on getting a long-sought reduction of its huge debt pile, easing capital restrictions and inclusion in the ECB's 1.74 trillion asset buying scheme.

Wednesday, November 2, 2016

An economist who was in the middle of the storm recounts Greece’s financial crisis


The Boston Globe

By Jonathan Schlefer
GLOBE CORRESPONDENT  NOVEMBER 01, 2016
When economist George Papaconstantinou returned to Greece after working for a decade at the Organization for Economic Cooperation and Development, he settled into a series of comfortable government and academic jobs. Then, to his surprise, PASOK, the social-democratic party, asked him to run for Parliament. He lost the first time but won in 2007. He also began advising the party leader, George Papandreou, on economic issues. Named PASOK’s press spokesman, he helped give the party a fresh, young image, contributing to its landslide election victory in 2009.

Thursday, October 27, 2016

China Gets Desperate About Debt

OCT 26, 2016 5:00 PM EDT

By Christopher Balding

Bloomberg

With its debts surging and growth sluggish, China has hit on a new strategy to revitalize its ailing economy. It’s the same as the old strategy. Only this time, it won’t work.

Earlier this month, China’s State Council released guidelines for a new swap program, in which companies can exchange troubled debt with banks in return for equity. The government hopes this will give the firms a chance to restructure on favorable terms, and avoid the prospect of “zombie companies” propped up indefinitely by state-owned lenders.

Sunday, October 23, 2016

Monetary Policy And Political Problems To Drive The Euro Lower

OCT 22, 2016 @ 11:57

Stephen Pope ,   CONTRIBUTOR

Forbes

Over the past week, foreign exchange markets have been offered opposing views on the next play in European and American monetary policy. The differences are wider than the Atlantic Ocean.

In Europe, the Bank of England (BOE) faces many problems as the falling level of Sterling threatens to ignite inflation from its current 1.0% at a time when the economy is struggling to accommodate the uncertainty over the terms of Brexit.

A larger dilemma faces the European Central Bank (ECB). With a tepid economy, GDP growth just 0.3% and unemployment of 10.1% coupled to a fragile banking system it is obliged to hold open the door for further monetary stimulus in December and maintain that accommodation deep into 2017.

Monday, October 10, 2016

IMF says still engaged with Greece, no decision yet on bailout role

Sun Oct 9, 2016 | 12:21pm EDT

Reuters

The International Monetary Fund said on Sunday it is still fully engaged in talks to join the Greek bailout program and has not yet decided on what role it will take.

The IMF's comment came after two sources with direct knowledge of the Greek bailout talks told Reuters on Saturday that negotiations for the fund to commit financial resources to the program are making little headway and the IMF likely would accept a special advisory status with limited powers.

"We remain fully engaged, with the aim of reaching agreement on a program that the fund can support with a new arrangement, as requested by the authorities," IMF spokesman Gerry Rice said in an emailed statement on Sunday. "In this regard a mission team will visit Athens soon."

Tuesday, October 4, 2016

Greece’s 2017 Budget Plan Sticks With Robust Growth Forecast

But analysts say austerity and tight credit conditions are likely to weigh on economy

The Wall Street Journal

By STELIOS BOURAS
Oct. 3, 2016 11:21 a.m. ET
0 COMMENTS
ATHENS—Greece’s budget plan for 2017 sees the economy rebounding strongly after a seven-year slump, but analysts say continued austerity and tight credit conditions are likely to weigh on its recovery prospects amid uncertainty over the country’s public debt.

Finance Minister Euclid Tsakalotos submitted a draft copy of the budget to parliament on Monday that is expected to be finalized in coming weeks after the country resumes talks with lenders on its reform program.

The 53-page budget sticks with Greece’s previous forecasts that the economy is expected to contract by 0.3% this year before growing by 2.7% in 2017. Many see these targets as too optimistic, saying the economy is now entering a period of stagnation, rather than growth, having shrunk by more than 25% since the debt crisis erupted in 2010.

Monday, October 3, 2016

To fix Greece, get your figures straight


 10/01/2016 12:29 pm ET
The Huffington Post


Michael G. Jacobides
Sir Donald Gordon Chair of Entrepreneurship and Innovation, London Business School
Greece has been making headlines again - and for all the wrong reasons. Egged on by government propaganda, the judicial system has allowed a rather grotesque case to be made against Mr Andreas Georgiou, former president of the Hellenic Statistical Authority (ELSTAT). His alleged crime was using applicable international rules to report the Greek government’s budget deficit, which had the effect of increasing it by just under 3% to a whopping 15% of GDP. Confusing cause and effect, some hot-headed Greek prosecutors claim that Georgiou’s un-sugarcoated report caused financial and social damage, leading to the EU/IMF Memorandum. Several commentators have already pointed out that shooting the messenger is a spineless, head-in-the-sand attitude. Now we have to accept that only accurate, internationally comparable figures can begin to save Greece from its financial woes.

Thursday, May 26, 2016

Greece’s Inconclusive Debt Deal

Tuesday’s accord, rather being than a decisive break in Athens’ crisis, puts off thorny political decisions
The Wall Street Journal

By SIMON NIXON
May 25, 2016 5:12 p.m. ET
1 COMMENTS
Greece has a new debt deal—but then it was always going to get a new debt deal.

Time and again, the eurozone has demonstrated that it is bound together by impressive reservoirs of political will: not only the will of debtors such as the Greeks, for whom the euro is both a trusted store of value and a symbol of their common European destiny, but also the will of creditors, who have been unwilling to risk the great costs and inevitable political upheavals of a eurozone breakup. Indeed, the determination to reach a deal was even greater at a time the breakup of the European Union itself is on the table in the U.K.’s Brexit referendum.

Wednesday, May 25, 2016

Global stocks climb as Brexit, Grexit risks ease

Wed May 25, 2016 5:26am EDT

LONDON | BY PATRICK GRAHAM
Reuters

Easing concerns over several major global risks helped stock markets rise robustly for a second day on Wednesday, underpinned by gains in oil and metals prices and data showing the U.S. economy can deal with a hike in interest rates.

Traders say several polls showing Britain will vote strongly to stay in the European Union in a referendum in June have done more than just support sterling, up 5 percent in trade-weighted terms from lows hit in April.

A new debt deal for Greece also looked to have headed off the risk of another round of uncertainty over its finances and even its future in the euro zone after a funding crisis a year ago, pushing European stock markets higher across the board.

Tuesday, May 24, 2016

Greece Needs Debt Relief More Than Ever


COMMENTARY by  Remy Davison
MAY 24, 2016, 1:00 AM

Fortune

It would be short-sighted to challenge aid.

As Eurozone finance ministers on Tuesday prepare to gather for a meeting to discuss Greece’s bailout, some officials are once again holding out on approving much needed funds to help the financially-troubled country pay off its debts. Regardless of their reasons, the idea of limiting aid to Greece is different today and shouldn’t even be an issue, given how increasingly vulnerable Europe’s economy has become.

Monday, May 23, 2016

Greece bailout: MPs approve new cuts to unblock bailout funds
22 May 2016

BBC

The Greek parliament has passed new budget cuts and tax rises two days before a eurozone meeting expected to unblock much-needed bailout funds.
The government led by the leftist Syriza coalition passed the widely unpopular bill by 153 votes to 145.
Greece agreed to a third bailout worth €86bn (£67bn; $96bn) last year.
Demonstrators gathered outside parliament on Sunday to protest against the new legislation. Eurozone finance ministers meet in Brussels on Tuesday.

Thursday, May 19, 2016

Now or later? Euro zone, IMF at odds over when Greece should get debt relief

Thu May 19, 2016 6:50am EDT Related: GREECE
BRUSSELS | BY JAN STRUPCZEWSKI
Reuters


The euro zone and International Monetary are struggling with Greece's debt crisis - not with Athens this time, but with each other over when to give Greece a break on its future massive debt repayments.

The euro zone has begun talks on debt relief for Greece but wants to postpone the final decision until 2018; the IMF insists Greek debt repayment is unsustainable and investors need clarity now.

Euro zone finance ministers are likely to forge a tentative plan when they meet next Tuesday - what in Brussels-speak is known as a political agreement. But their offer is unlikely to be anything but highly conditional, euro zone officials preparing the talks said.

Tuesday, May 17, 2016

IMF Wants Eurozone Debt Relief for Greece Until 2040

Interest rate on eurozone loans would be fixed for 30 to 40 years, say people familiar with IMF proposal

By MARCUS WALKER
Updated May 17, 2016 3:28 a.m. ET
3 COMMENTS
BERLIN—The International Monetary Fund is pressing the eurozone to let Greece skip paying interest or principal on bailout loans until 2040, say officials familiar with the talks.

The IMF wants the loans to Greece to fall due gradually in the following decades, and as late as 2080, according to the IMF’s proposal.

Greece’s interest rate on eurozone loans would be fixed for 30 to 40 years at its current average level of 1.5%, with all interest payments postponed until loans start falling due, under the IMF proposal.

Thursday, May 12, 2016

Why Greece Still Needs Debt Relief


FORTUNE

COMMENTARY by  Barry Eichengreen  @b_eichengreen  MAY 11, 2016, 3:29 PM EDT

The Greek debt crisis is the crisis that never stops giving. More than six years have now passed since the crisis broke, and the country is still struggling to get its finances under control. In the latest installment, Greek lawmakers agreed early Monday morning to a new set of pension and tax reforms.

Unfortunately, the new package will not be enough, by itself, to prevent the crisis from blowing up again. Its higher marginal tax rates for top earners, lower tax-free thresholds, and additional pension cuts are designed to reduce the budget deficit by 1.5% to 3% of GDP. This is an expression of good faith intended to reassure German finance minister Wolfgang Schauble and his constituents.

Saturday, March 5, 2016

Migrant Crisis Alters E.U. Calculations for Greece as Its Debt Struggle Continues

By LIZ ALDERMANMARCH 4, 2016
The New York Times

ATHENS — When Greece’s debt crisis threatened to sink the European Union’s single currency last summer, the rest of Europe, led by Chancellor Angela Merkel of Germany, ganged up to deliver the Greek government a stern message: Overcome your domestic political problems and do what is necessary to hold the Continent together.

Eight months after Greece agreed to do its part, it is the rest of Europe that is failing to muster the will to address a threat to the bloc’s unity, this time the continued influx of migrants from the Middle East and beyond. And Greece, the main entry route for asylum seekers, has been largely left to fend for itself.

“We are now in the situation where Greece is essentially becoming a holding pen for refugees and is being asked to solve a problem created by other countries,” said Jens Bastian, an economics consultant based in Athens and a former member of the European Commission’s task force on Greece. “You are basically putting the management of Europe’s migrant crisis at the doorstep of Greece.”