Home >

"Greek Drama" Climax

2012/2/13 11:55:00 16

Although the Greek government and its international

Claims

Significant progress has been made in the negotiations between the people and the parties in the Greek ruling coalition, but there are still a number of important steps before reaching the final agreement.

First of all, the "three carriages" (the European Commission, the European Central Bank and the IMF) need to assess whether Greece meets all the rescue conditions, while IMF will prepare a new sustainability analysis of Greek debt.

Second, the Greek parliament is expected to vote on a series of new reform proposals.

Third

The detailed final agreement on PSI is also expected to be finalized and launched at a certain time this week.

Greek finance minister Venizelos (Evangelos Venizelos) told parliament on Saturday.

Finance

The committee said that the final agreement on Greek PSI bond swap must be completed by February 17th.

In addition, some eurozone parliaments, including Germany and Finland, will have to agree to agree on their contribution to the second round of Greece's rescue plan.

Ideally, before the euro zone finance ministers' meeting on Wednesday, the Greek parliament should have passed.

reform

Plan and successfully found additional ways to reduce expenditure.

Euro group chairman Juncker listed three terms for rescuing Greece last Thursday: first, the Greek parliament approved the austerity plan on Sunday (February 12th); second, confirmed next year to cut expenditure by 320 million euros; third, strong.

Politics

Promise.

The Greek Cabinet meeting passed the draft reform requirements of the European Union and IMF on Friday, including the reduction of the minimum wage 22%, the reduction of 150 thousand public sector jobs and the reduction of pensions.

The Greek parliament plans to vote on the bill in February 12th.

On the other hand, although the role of the European Central Bank is far from clear, negotiations between Greece and private sector creditors may soon come to an end.

This is likely to happen before this Wednesday's finance ministers meeting, but for Greece, everything is hard to say.

The goal of the "three carriages" is to reduce Greece's debt to GDP ratio to 120% in 2020.

If the analysis of the "three carriages" is best presented at the meeting this Wednesday, it shows that this goal can be realized, which requires higher participation rate of the bond swap and lower interest rate on the new bonds in the old exchange.

Well, this week, we will see that the PSI agreement is labeled "voluntary".

But if it is impossible to achieve "voluntary", then there will be "mandatory debt restructuring", which may be resolved through the introduction of "collective action clauses" by Greek bonds issued under Greek law.