UPDATE 1-No debt restructuring for Cyprus, EU's Rehn says

Tue Feb 12, 2013 8:47am EST

* Cyprus awaiting a bailout equal to its entire economy

* Wary of fallout, Commission rule out losses for depositors

By Jan Strupczewski and Leigh Thomas

BRUSSELS, Feb 12 (Reuters) - The European Commission is not working on a debt restructuring for Cyprus that would force heavy losses on investors, the EU's top economic official said on Tuesday, backing the island's finance minister who is firmly opposed to such a move.

Global shares, euro pause ahead of ECB decision

By Richard Hubbard

London | Thu Feb 7, 2013 3:39am EST

(Reuters) - The euro, German bonds and shares steadied on Thursday, as investors awaited the European Central Bank's policy meeting later in the day and President Mario Draghi's views on the region's growth prospects.

UPDATE 2-IMF sees up to 9.5 bln euro Greek funding gap in 2015-2016

 Jan 18, 2013 9:35pm EST

* Greek economy likely to shrink again this year

* Brazil opposes loan tranche to Greece

By Lesley Wroughton

WASHINGTON, Jan 18 (Reuters) - The International Monetary Fund estimated on Friday that Greece faced a financing gap of between 5.5 billion and 9.5 billion euros for 2015 and 2016 and said it had assurances from Europe it would deliver the aid in the final years of the bailout.

A Strong Euro Starts to Worry Europe

By Carol Matlack on January 16, 2013 

http://www.businessweek.com/articles/2013-01-16/a-strong-euro-starts-to-worry-europe#r=nav-fst

A new obstacle lies in the path of euro zone economies struggling to regain traction. It’s the strength of the euro currency, which is trading this week near a 10-month high of $1.34 against the dollar and threatening the competitiveness of European exporters. “Dangerously high” was how Luxembourg Prime Minister Jean-Claude Juncker described the exchange rate in a Jan. 15 speech.

How Europe's Currency Survived 2012 Intact

The Wall Street Journal
http://online.wsj.com/article/SB10001424127887323300404578205580657203900.html

Leaders Muddled Through, but Bought Time for the Euro Area, Which Enters 2013 With All 17 Members Along for the Ride

With three days left of the old year, there's still time for even this prediction to go awry. But let's stick our necks out: Contrary to some expectations, the euro zone will end the year as it entered it—with 17 members.

 

Greek Bank Capital Needs at EU27.5 Billion, Bank of Greece Says

Bloomberg

By Marcus Bensasson & Christos Ziotis - Dec 27, 2012 7:34 PM GMT+0200

Greece’s four largest banks need to boost their capital by 27.5 billion euros ($36.3 billion) after taking losses from the country’s debt swap earlier this year, the largest sovereign restructuring in history.

Greece says still seeking more time to pay off debt

PARIS | Thu Oct 4, 2012 2:32pm EDT

(Reuters) - Greece is still hoping the European Central Bank will agree to give it more time to repay debt and allow euro zone rescue funds to be used to recapitalize its banks, Prime Minister Antonis Samaras said on Thursday.

A Fragile Euro System Still Needs a Genuine Banking Union

By the Editors Sep 24, 2012 1:30 AM GMT+0300

Bloomberg

As recently as a couple of weeks ago, it seemed that Europe’s governments had reached agreement on the need for a banking union. This consensus, if it ever existed, is unraveling, and that’s dangerous.

As Summit Looms, Merkel Sees 'Controversial' Talks

The Wall Street Journal

BRUSSELS—European leaders embark on talks here Thursday over steps they hope will begin to lift doubts about the survival of the euro, amid skepticism in financial markets that they can achieve a breakthrough to stem the debt and banking crises.

Greek Euro-Exit Moonscape Result May Threaten Drachma Choice

By Jonathan Stearns and Elisa Martinuzzi - Jun 6, 2012 12:00 AM GMT+0300

 Bloomberg

Exclusive: ECB stops operations with some Greek banks

(Reuters) - The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalized, the ECB said on Wednesday, confirming news earlier reported exclusively by Reuters.

For Portugal, Moment of Truth Nears

The Wall Street Journal

By CHARLES FORELLE in London and PATRICIA KOWSMANN in Lisbon

Politicians in Lisbon and policy makers in Brussels insist that Portugal isn't like Greece. This spring, the country will have to prove it.

Germany Seeks to Avoid Two-Step Vote on Greek Aid

By Brian Parkin and James G. Neuger - Feb 17, 2012 10:11 AM GMT+0200

Bloomberg

… As long as Greece meets conditions for the aid, the finance ministers meeting in Brussels will probably approve the package…

ECB opens door to indirect Greece aid

… Greek politicians finally signed up…

…. If the ECB distributes part of its profits …, that's not monetary financing,…

… the December operation had averted a major credit crunch…

By Eva Kuehnen

FRANKFURT | Thu Feb 9, 2012 1:08pm EST

EU Nears Confrontation Over Greek Rescue

Bloomberg

By James G. Neuger and Jonathan Stearns - Jan 31, 2012 10:50 AM GMT+0200

… Euro leaders left a Brussels summit late yesterday with no accord…

… Germany’s proposal for an EU-appointed overseer of the Greek budget prompted consternation in Athens…

… The permanent fund requires governments to put collective action clauses into new bond issues…

Greek debt talks resume in race against the clock

By George Georgiopoulos and Lefteris Papadimas

ATHENS | Thu Jan 26, 2012 6:52am EST

… Christine Lagarde put pressure on the ECB on Wednesday, saying it and other public creditors may need to accept losses…

… The interest rate on the new bonds has been the main stumbling block…

… The ECB had ruled out taking voluntary losses on its Greek bond holdings but is now debating how it would handle any forced losses …

New Hurdles Loom in Euro Crisis

Italy Bond Sales, France Vote Are Among Signal Events for Europe's Economy—and the World's

By BRIAN BLACKSTONE

The Wall Street Journal

… The coming year will be a make-or-break one for the euro zone…

… There's just an almost unending list of things that might go wrong…

… Euro-zone governments will compete for new capital with the region's banks…

… One-seventh of U.S. goods exports is destined for the euro bloc….

… The Chinese economy's expansion is expected to slow to around 8% in 2012 from more than 9% in 2011…

Dithering at the Top Turned EU Crisis to Global Threat

By CHARLES FORELLE and MARCUS WALKER

The Wall Street Journal

… The consequence was that a crisis in a few small economies turned into a threat to the survival of Europe's common currency and a menace to the global economy…

… Greece's bondholders would be required to lend more money…

… France's banks had lent more heavily than Germany's to Greece…

… Mr. Trichet lost his patience…"I don't agree with private-sector involvement,…

… Mr. Sarkozy said he would accept the private-sector involvement—if Ms. Merkel dropped her resistance to giving the euro-zone bailout fund broad new powers…

ECB Overnight Deposits Reach New High

By WILLIAM LAUNDER

The Wall Street Journal

… Use of the European Central Bank's overnight deposit facility reached a new, all-time high…

… The high level reflects ongoing distrust in inter-bank lending markets,…

… It further underlines the abundance of liquidity…

Damned with faint plans

Euro-zone government bonds have not been made safe—and the euro project remains in peril

Dec 17th 2011 | from the print edition

The Economist

… Yields on the ten-year bonds of Italy and Spain, …have risen again…

… The pact’s rigidity would make recessions worse, and the new fiscal rule would not have kept Ireland or Spain out of trouble…

… the money available would be barely enough to cover the borrowing needs of Spain and Italy over the next two years….