the clock is ticking. Greece is aiming to have a final deal with creditors in place by early February so as to complete the formal debt swap program by the end of the month and well before the March 20 redemption deadline.
But the first person said regardless of the latest complications in the talks, the EU and the IMF won't let Greece default. He said there are some thoughts of an emergency bridge loan as a last resort for Greece, without elaborating.
"There are no such thoughts [letting Greece default]," he said. "So even if the haircut talks drag on there will be a way for Greece to redeem its bonds in March."
In the meantime inspectors from the so-called troika of creditors--the IMF, the European Commission and the European Central Bank--are pushing Greece for more budget tightening measures to give their consent to both a debt deal and a new loan.
The demands include slashing salaries in state-owned enterprises and closing down a number of state entities that could result in 10,000 layoffs. The troika is also pushing Greece to take measures that will boost the country's competitiveness, including possible cuts in private sector bonus salaries.
The talks with the troika, which began in Athens last week, are expected to conclude by Tuesday.
http://online.wsj.com/article/BT-CO-20120122-703236.html
But the first person said regardless of the latest complications in the talks, the EU and the IMF won't let Greece default. He said there are some thoughts of an emergency bridge loan as a last resort for Greece, without elaborating.
"There are no such thoughts [letting Greece default]," he said. "So even if the haircut talks drag on there will be a way for Greece to redeem its bonds in March."
In the meantime inspectors from the so-called troika of creditors--the IMF, the European Commission and the European Central Bank--are pushing Greece for more budget tightening measures to give their consent to both a debt deal and a new loan.
The demands include slashing salaries in state-owned enterprises and closing down a number of state entities that could result in 10,000 layoffs. The troika is also pushing Greece to take measures that will boost the country's competitiveness, including possible cuts in private sector bonus salaries.
The talks with the troika, which began in Athens last week, are expected to conclude by Tuesday.
http://online.wsj.com/article/BT-CO-20120122-703236.html
No comments:
Post a Comment