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Austrian FinMin Maria Fekter tells the Oesterreich newspaper that Greece will get "a...

  • Sunday, September 16, 2012, 5:55 AM ET
    Austrian FinMin Maria Fekter tells the Oesterreich newspaper that Greece will get "a cost-neutral extension" to its austerity program. Ie, the country will get more time but no more money. The FT reported in August that a two-year extension would require an extra €20B, but Greece wouldn't ask the eurozone for the cash.
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This news story has 6 comments:

  •  
    Sure, they probably did a Total Island Swap with Goldman Sachs.
    16 Sep 2012, 08:36 AM Reply Like
  •  
    Its just another can kicking. Apparently this one would result in an increase to their debt of eu 20b. The IMF was quite explicit recently that it's debt obligations could not be modified.
    16 Sep 2012, 10:59 AM Reply Like
  •  
    So now we've progressed down the pecking order to the Austrian Finance Minister?

    From the folks that I know in Greece, they can extend, restructure, rename, re-anything and its not going to make any difference. Structurally things are so bad in Greece that nothing will change.

    You can't run a country that has a greatly bloated bureaucracy and a populace that believes is totally ok to not pay taxes. Its a broken country and its systemic. It may not successfully restructure in our lifetime.

    The same might be said of the USA in regards to being able to successfully restructure in our lifetime.
    16 Sep 2012, 11:14 AM Reply Like
  •  
    No doubt the time will be extended, but it will make no difference anyway. The majority of the EU bailout to Greece is simply new loans wherein the cash received by Greece just goes to payoff old loans and interest to EU banks and the troika anyway. Almost none of the Greek bailout money actually goes into the Greek economy.
    16 Sep 2012, 12:30 PM Reply Like
  •  
    As I heard from the grapevine, the so-called 'extension' is only for 2 to 3 weeks. Not much of an extension.
    16 Sep 2012, 08:58 PM Reply Like
  •  
    Giving a bankrupt an extension without addressing any of the pathologies that have led to serial failure will not suddenly lead to an increase in the capacity to generate more income or create more wealth
    17 Sep 2012, 05:13 AM Reply Like
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