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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Fixing Greece with superglue

So it happened. Greece is getting its second bailout package, but really, the problem isn’t solved. The IMF more or less immediately said there would need to be a third round of funding; plus, the April elections that could tip the austerity policies that were agreed upon are still lurking in the background.

Private bond holders have to take deeper cuts than agreed on before: instead of 50% (70% net present value), there will be a nominal value loss of 53.5%. Overall, the Greek debt will be cut to 120.5% of GDP by 2020, about 44% less than what it is now.

Even the ECB let go of the idea of profiting from Greek bonds and will pass on profits to European national central banks, which in turn will pass them on the Greece.

While it seems that Germany just wants to get it all over with, the Netherlands is really sceptical of the whole situation and would rather see permanent EU fiscal management in Greece. read article

Find the official statement of the Eurogroup here, and what Felix Salmon thinks (including a chart) here.

Sometime last night, a confidential report prepared by the troika (IMF, ECB, EU Commission) became public (not so confidential now, is it..). It shows that Greece will need another bailout, that it might never overcome its debt burden and that Greek banks will need up to €50bn in recapitalization funds, as opposed to the €30bn that were proposed. Find the report here.

The case against working long hours [maybe the French got it right all along…]: it might make you stupid. read article

Finally, the Onion says The Economist will stop printing for a month to let readers catch up… oh how I wish that was true… read article

So long.

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