Νέα της στιγμής Φεβρουαριος 2012

Governments in Europe are thinking about reducing interest rates on emergency loans to Greece and considering using the European Central Bank to help out with the new financing gap seen in the next bailout programme, according to Bloomberg. The website, citing two unnamed people close to the matter, said that finance ministers found that Greece’s debt-to-gross domestic product ratio would fall to 129% but would miss the target of 120%.

Eurogroup President Jean-Claude Juncker said last night that Eurogroup leaders would make "all the necessary decisions" regarding a bailout on February 20th. Meanwhile, Greece's finance minister Evangelos Venizelos has accused Europe's leaders of "playing with fire" in delaying the next tranche of aid. "In the euro area, there are plenty who don't want us anymore. There are some playing with fire, domestically and abroad," he said. German counterpart Wolgang Schaeuble has been reported as saying that he did not want to "pour money into a bottomless pit".

Thursday, February 16, 3:23 PM "(The) risk of collective action clauses (CAC) being imposed has increased considerably in recent days," writes the FT's Ralph Atkins, sounding like he too believes the ECB is swapping out of its old Greek paper for new to avoid an imminent default.

Thursday, February 16, 4:10 PM Market recap: Stocks surged to multiyear highs, fueled by strong U.S. economic data, including a four-year low in weekly jobless claims, and reports the eurozone central banks agreed to swap their existing Greek bonds for new ones. All sectors rose, led by banks. The euro turned higher, over $1.31; crude oil ended at six-week highs. NYSE advancers led decliners more than three to one.

The latest reports are pointing to the confirmation of the European Central Bank’s (ECB's) participation in the debt swap and an increased control over the bailout by Eurozone officials. The ECB seems to have finally agreed to forgo profits on the Greek bonds that it had bought at a discount. According to an e-mail interview with Reuters, the president of the Bundesbank, Jörg Asmussen, confirmed that this was the monetary authority’s intention.

Though it’s not quite clear how the process would go through, experts expect the ECB Greek debt holdings to be purchased by the European Financial Stability Facility(EFSF) bailout fund.

With regard to an iron-clad control of Greek finances, there is market talk of the creation of an escrow account to better to control the aid. Speculation is that the account would hold nine to 12 months of public financing needs. In theory, this process would assure that funds go to servicing the debt instead of getting taken up by general expenditure. The Financial Times also reports that “the new bailout will include a permanent and beefed-up presence of international monitors who will attempt to keep real-time tabs on the Greek government’s spending decisions.”

Greek government said to prepare collective action clause law.

Rumors creditors already preparing lawsuits against Greece for ECB bond transaction

GREEK PM PAPADEMOS: "constructive climate" in talks today.

GERMAN FM SCHAEUBLE: Greek 2020 debt target may be 123% of GDP.

GERMAN FM SCHAEUBLE: Must ensure Greece aid used first for debt service.

GERMAN FM SCHAEUBLE: The euro is 'safe',will remain a 'stable currency'.

Just a handful of stocks were in the red in early trading on Monday, as market sentiment was lifted by hopes that Greece can secure its next tranche of aid. Meanwhile, news of policy easing in China over the weekend has eased fears of a "hard-landing" for the world's second-largest economy.

Eurozone finance ministers and Greek Prime Minister Lucas Papdemos are set to meet in Brussels this afternoon with hopes of securing the country's €130bn bailout. Austrian Finance Minister Maria Fekter told national TV yesterday that "it looks like" ministers will reach an agreement. "I don't think there will be a majority to go down any other avenue", she said.

The issues on the table include not only the €130bn but also a deal with private sector lenders who will be forced to take a 70% cut in the loans they made to Greece. Another key issue is the target of getting Greece's debt-to-GDP ratio to 120% by 2020. This is the level which the International Monetary Fund believes is "sustainable", thus allowing it to contribute to the bailout.

Dutch minister De Jager says he is in favor of permanent Troika occupation of Athens.

Deutsche Bank AG CEO: It will take years to fix Greek budget problems.

Deutsche Bank CEO Ackermann: Creditors offering 70% NPV loss, talks ongoing. He is confident that PSI deal can be reached next week.

Greece's Venizelos meets with IIF, Troika on debt swap in parallel to Eurogroup Brussels talk according to ministry.

Some euro zone governments would accept Greek debt/GDP 123-125% in 2020; IMF still insisting on 120% - sources.

The Financial Times obtained a copy of the report and said that “even under the most optimistic scenario, the austerity measures being imposed on Athens risk a recession so deep that Greece will not be able to climb out of the debt hole.” The most “pessimistic” scenario suggests that at least €245bn would be needed.

Fitch downgrades Greece to C from CCC

GERMAN IFO [FEB] BETTER THAN EXPECTED. BUSINESS CLIMATE 109.6 VS. 108.8 EXPECTED.

EU COMMISSION PREDICTS EU ECONOMIC GROWTH AT -0.3% IN 2012, VERSUS PREVIOUS PREDICTION OF 0.5%.

From CNBC: Greek Parliament approves private creditor debt writedown deal

Germany is against boosting ESM, according to German press

Germany wants reform before Greece gets aid, says German newspaper Handelsblatt.

The IMF is warning of EU recession, warning of Greek implimentation risk and saying it will limit its Greek help

Germany to link Greek bailout backing to IMF and broad PSI uptake, according to unnamed source.

Greece issues formal invitation to bondholders for debt swap.

Greece aims for 90% of bonds being tendered in debt swap.

Greece says bonds have aggregate outstanding amount of 206 billion euros.

IIF'S DALLARA: Debt swap can help Greece restore confidence.

GREECE: Final maturity on new bonds 2042.

GREECE: Coupon on bonds 2% p.a. for payment dates 2013, 2014, 2015.

GREECE: Coupon on bonds 3% p.a. for payment dates 2016, '17, '18, '19, '20.

GREECE: Coupon 3.65% p.a. for payment date in 2021.

GREECE: Coupon 4.3% for payment dates in 2022 and thereafter.

IIF'S DALLARA: IIF focused on negotiating voluntary deal.

Greece deal won't proceed if less than 75% validly tendered.

IIF'S DALLARA: Activity CACS in Greece would raise concerns.

European Central Bank (ECB) President Mario Draghi has said he considers that a turning point has been reached in the sovereign debt crisis and that Eurozone countries must now follow up with the implementation of austerity measures to assure an end to the saga.

In an interview with The Wall Street Journal (WSJ), Draghi expressed optimism that the worst was over in euro area, but insisted that member states need to move forward and complete fiscal targets.

Finance ministers from the G20 group of nations are meeting in Mexico this weekend to discuss issues facing the world economy. It’s likely the Europeans will come under pressure to enhance the resources currently available as a “firewall” to protect Italy and Spain from descending into the same chaos as witnessed in Greece

A communique agreed by G20 finance ministers in Mexico City last night said a decision by Eurozone leaders to boost their own firewall was "essential" before any more external resources were allocated via the International Monetary Fund. () Germany's Wolfgang Schaeuble fired back: "Let me be clear. It does not make any economic sense [to take measures] which would neutralise the interest risk in the Eurozone, nor endlessly pumping money into stability funds, nor starting up the ECB printing press." Mr Schaeuble insisted the rescue efforts were adequate. "I dare to say that Europe has done its homework," he said, claiming the reduction of Eurozone bond yields in recent weeks "show we're on the right course". The G20 also used the communique to warn that "growth expectations for 2012 are moderate and downside risks continue to be high," The Telegraph reports.

AM German parliament is set to vote today on the Greek bailout. The vote is expected to pass despite a top member of one of Merkel's coalition partners calling for Greece to exit the euro. There's also Germany's best-selling newspaper, Bild, exhorting lawmakers to STOP

Standard & Poor's : European Financial Stability Facility outlook to negative

German Bundestag: 17 lawmakers in Merkel's ruling coalition voted against 2nd Greek bailout package

GERMAN CHANCELLOR MERKEL: falls short of own absolute majority as Greek aid passes

ECB'S NOWOTNY: 3-year loan gave security to the market.

ECB'S NOWOTNY: ECB is very cautious, wants to see long term effects.

ECB'S NOWOTNY: not "convinced" about case for higher firewall.

ECB'S NOWOTNY: ECB's primary mandate is price stability.

ECB'S NOWOTNY: ECB has problem of addicted banks

S&P cuts Greece's credit rating from CC to "selective default"

Greece downgraded to selective default by Standard & Poor's from CC.

GREEK FINANCE MINISTRY: Greece anticipates positive rating change after execution of creditor debt swap.

ECB temporarily suspends Greek debt for use as collateral.

Euro Leaders' Summit Won't Be Called Friday - EU Source

Top German court says parliamentary panel set up to discuss Greek aid is "in large part" unconstitutional.

S&P says US public finance challenges have not been addressed and fundamental solutions for the US have not been embarked upon.