Eurogroup reaches agreement on 2nd rescue at Greece
Baku, February 21 (AZERTAC). The Eurogroup has reached finally reached on the rescue Greece after thirteen hours of intense negotiations, although the exact conditions of this have not been yet revealed. What is known is that the program includes measures to reduce the current level of debt of the country (160% of GDP) to 120,5% of GDP by 2020, one point more than initially expected. During this day of negociacioness, the Greek Government was optimistic about the outcome of the meeting of the Eurogroup in Brussels, which is expected to give the green light to the new loan of 130 billion euros and the process by which a mean of about € 100 billion of the debt of the country in the hands of the private sector will be carried out. “We are ready to conclude this Monday a long process” on aid European and removes the debt, said on his arrival in Brussels Minister of finance Greek, Evangelos Venizelos. The Prime Minister of Greece, Lukás Papadimos, said that his country hopes to close “a long period of uncertainty which has not benefited the Greek economy nor of the eurozone”. “Europe knows how important it is to send a clear message that the decisions are completed and implemented”, said exbanquero, who leads an executive unit as an independent. For its part, the European Commissioner for economic and Monetary Affairs, Olli Rehn, expressed his confidence that will be adopted today the second rescue to Greece because that is “essential” to avoid a disorderly default in the country. “I hope that, after weeks and months of long and difficult negotiations, Ministers can close tonight an agreement on a second program for Greece, including also a very meaningful involvement of the private sector and the financing of the public sector,” Rehn said in a recorded message prior to the start of the meeting of the Eurogroup. “This is essential to avoid a disorderly default of Greece and ensure financial stability across Europe,” said the Vice-President of the European Commission.
The Eurogroup continues negotiating after 12 hours of meeting, given the difficulties that the private sector assume greater losses than expected, diplomatic sources said.
The euro zone finance ministers resumed the meeting after several recesses and attempts to approximate positions between the Greek authorities and representatives of the International Institute of Finance (IIF), which negotiates with Athens on behalf of banks and investment funds. “The negotiations continue because it seems the remove fails to what he has to go,” they noted the same sources. The voluntary participation of the private sector in the rescue of Greece is one of the essential pillars of the plan of financial assistance to the country which also includes 130 billion of the International Monetary Fund and the EU.
The cancellation of half of the helena debt in private hands - amounting in total to 206.000 million euros as planned so far might be insufficient because of the grave deterioration suffered by the Greek economy. Private creditors already pledged in October to take voluntary losses equivalent to 50% of the nominal value of the Hellenes bonds that have, resulting in a net loss of 70%. If the second rescue is finally unlocked on Monday, in the coming days is released already the bond exchange offer to banking to make effective the quita to Greek debt. But, according to the analysis on the Greek debt sustainability made by the `troika`, either the mean or the second rescue will serve to achieve reduced from 160% to 120% of GDP by 2020, the goal set by European leaders in October. For this reason, the eurozone countries arise again lowered the interest rate they charge to Athens by the rescue, according to sources.
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