Tag Archives: bailout

Finally: the European Bazooka!

By Andrew Busch | Published: May 10, 2010

27 European nations and the IMF agreed to a mammoth E750 billion plan to stabilize the financial markets. 16 Euro area governments were joined by 11 European Union governments in meetings over the weekend to create the plan and commit to E440 billion. The European Union budget is going to contribute E60 billion. The IMF is going to contribute E250 billion. The UK abstained from contributing to the plan.

The European Central Bank is participating by agreeing to provide Euro liquidity and US dollar liquidity. Here are the four measures they’ve agreed to do to address the tensions in the … …READ MORE

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Germany Passes Greek Bailout

By Andrew Busch | Published: May 7, 2010

In a vote along party lines, the German parliament approved the E22.4 billion Greek aid bill as part of the joint EU-IMF rescue of Greece. According to Germany’s DPA, Chancellor Angela Merkel‘s centre-right coalition, with the support of the Green party, carried the vote, which passed with 390 votes in favor, 72 against and 139 abstentions from the opposition party of Social Democrats. Clearly, the opposition is making a play for the state vote in North Rhine Westphalia on Sunday and tapping into German voter’s anger over paying for Greek fiscal misdeeds.

Also, German banks and insurers have pledged to … …READ MORE

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Top Ten Points on Greece

By Andrew Busch | Published: May 3, 2010

E110 billion over three years.
E80 billion from European Union members.
E30 billion from IMF and they will vote this week to approve
E30 billion more of austerity cuts from Greece.
2014 is when Greece must meet 3% deficit to GDP
ECB to continue to accept Greek debt to repo
Germany must vote to approve deal this week.
Greek unions to strike on Wednesday
Questions arise over who’s next: Portugal, Spain, Italy, Ireland
The loans to Greece will be at 5%.

A bit of perspective, this is the largest country bailout ever attempted and is twice as large as the … …READ MORE

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Greece Downgraded Again

By Andrew Busch | Published: April 22, 2010

09:26 22Apr10 RTRS-GREECE MAY GET SHORT TERM BRIDGE LOAN BEFORE MECHANISM IS ACTIVATED- SENIOR GOVT SOURCE

09:27 22Apr10 RTRS-SHORT-TERM LOAN IS A THEORETICAL OPTION, NO NEED FOR IT YET- SENIOR GOVT SOURCE

Euro rallies 50 pts and then sells back down……amazing. Don’t think they have the legal framework to do it….

09:32 22Apr10 RTRS-MOODY’S DOWNGRADES GREECE’S SOVEREIGN RATINGS TO A3; ON REVIEW FOR FURTHER POSSIBLE DOWNGRADE… …READ MORE

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Greece Bailed Out! Seriously, We Mean It This Time……We Think:

By Andrew Busch | Published: April 12, 2010

Over the weekend, the EU and IMF announced a support package for Greece that appeared initially to mollify German constitutional concerns. As I predicted on Friday, the first reaction to the news was a big rally in the Euro and it soared above 1.3600. The 45 billion Euro deal would have 30 billion from the EU states and 15 billion from the IMF supplied at a 5% rate to Greece. The rate is a compromise between where Germany borrows in the market (10 yr 3.19%) and where Greece can borrow (above 7% on Friday, now 6.62%).

On the news, Greek … …READ MORE

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EU Vested Interest in Greece

By Andrew Busch | Published: February 11, 2010

The on-going saga for Greece and the European Union continues and the latest headlines are these:

RTRS-PURCHASES OF GREEK BONDS BY EURO ZONE STATE-OWNED BANKS IS ONE OF OPTIONS CONSIDERED IN EU PLAN TO SUPPORT GREECE-EU SOURCE
RTRS-EUROGROUP ON MONDAY TO DISCUSS DIFFERENT OPTIONS OF SUPPORT FOR GREECE -EU SOURCE
RTRS-SUPPORT OPTIONS FOR GREECE COULD VARY FROM COUNTRY TO COUNTRY -EU SOURCE
RTRS-GREEK SUPPORT MECHANISM COULD BE STRUCTURED IN STAGES DEPENDING ON LEVEL OF NEED -EU SOURCE
RTRS-OBSTACLE TO MORE DETAILED AGREEMENT ON GREECE SUPPORT NOW IS LACK OF GERMAN JUNIOR COALITION PARTNER CONSENT-EU SOURCE
RTRS-COUNTRIES COULD PARTICIPATE IN SUPPORT … …READ MORE

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