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The Troika is reportedly inching closer to a deal that would allow Greece to receive the next...

The Troika is reportedly inching closer to a deal that would allow Greece to receive the next tranches of its bailout, with the IMF agreeing to deem the country's debt viable if it falls to 124% of GDP by 2020 instead of 120%. That apparently means that the funding gap that negotiators need to plug falls to around €10B, for which several proposals have been made. It seems to be a case of, if you pass the red danger line, move the line.
Comments (9)
  • Idiots..they will not be in the EU in 2020
    23 Nov 2012, 08:45 AM Reply Like
  • To give money or not to give money. It is clear that no money should be given to Greece but then it is a political decision and not a financial one. If they give another bailout to Greece, which is the thing that they are talking about, Greece will be back begging for more money in few months as they will implement no reforms at all. The best way would be to push them into starting a parallel currency.
    23 Nov 2012, 10:07 AM Reply Like
  • It's not about giving money to Greece or not. Almost all the new money Greece receives goes right back out the door again as loan and interest payments to the EU banks, ECB, IMF, etc. on the old debt. If no new money is given to Greece then the old loans will slip into default. Greece gets very very little of any new cash that actually goes into the Greek economy. So, it's really more a matter of when to force the EU banks, IMF, ECB, etc. to recognize that they are sitting on hundreds of billions in Greek bad debt and to recognize losses on such. But as long as they keep pretending and keep giving Greek more new loans to roll over the old loans, then they can pretend that all the Greek debt is repayable and not recognize any bad debts.
    23 Nov 2012, 10:40 AM Reply Like
  • There is that as well of course. Still lending Greece more money is a waste as some of the money does go towards paying salaries of government workers there. Why don't they just try to fight world hunger with this money instead of giving it to corrupt officials.
    24 Nov 2012, 04:12 AM Reply Like
  • Clowns. All they have to do is change their estimate of next year's growth from 3% to 5% and the rest of the numbers will work. Of course, -3 is closer to the truth.
    23 Nov 2012, 11:26 AM Reply Like
  • Haha. Excel spreadsheets are the most important thing in government policies. They should plug in 10% growth in Greece ad infinitum. Problem solved.
    24 Nov 2012, 04:11 AM Reply Like
  • Actually, it is kick the can down the road until after the German election in September of next year.
    24 Nov 2012, 05:35 AM Reply Like
  • Merkel's unwillingness to recognize their losses on their holdings of Greek Debt has destroyed her credibility, as well as that of her political party. Of course, most of this bailout goes right back to pay interest in this same debt, which is more than proof that the debt needs to be severely devalued. While she talks the talk of frankness and objectivity, she walks the walk of deceptive marketing to postpone awareness of reality. Very disappointing..... she should take the haircut, and get on with life.


    Her real job which she hasn't ever even tried to address is how to get Germany, and the rest of the Eurozone back onto a path of economic growth.
    24 Nov 2012, 01:19 PM Reply Like
  • Merkel is trying to avoid making the election a referendum on the Euro which terrifies Europe.


    The last thing the European political leaders need is a German election where the electorate is asked to take sides between cutting Greece loose/leave the Euro and a debt writedown.
    24 Nov 2012, 03:10 PM Reply Like
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