(Image Source: CNN)
BY EMOKE BEBIAK
ANCHOR ANA COMPAIN-ROMERO
You're watching multisource world news analysis from Newsy.
Global markets plunged Tuesday as the latest installment of the Greek debt saga unfolded. CNBC reports the EU is delaying a bailout payment to the country, scheduled for October 13.
“European officials are putting off sending the next tranche of aid until later in October so they can renegotiate a deal with Greece and the bondholders. Investors are worried that this increases the chances of a ‘disorderly default,’ rather than a negotiated haircut.”
The Wall Street Journal explains Europe won’t just let Greece drown--rather, it’s trying to ensure Greece holds up its part of the bailout agreement...
“[I]t is not in Europe's interests to allow a disorderly, accidental default to occur. Instead, the delay seems more about ensuring that Greece actually implements measures to save on public-sector wage expenditure, such as a plan to transfer 30,000 workers into a labor reserve at reduced pay.”
The decision came after Greece acknowledged it wouldn’t meet the 2011 benchmark set forth by the EU. Voice of America says withholding the payment is part of the EU’s plan to change the bailout agreement increasing pressure on the private sector...
“[P]rivate creditors will have to take bigger losses on the Greek loans they hold… The private Greek bond holders were originally targeted for 21 percent losses on their investments, but some analysts say the figure could rise to 50 percent.”
To alleviate panic after the EU’s announcement, Greece said the crisis is not as bad as it had been previously predicted. The New York Times writes...
“Seeking to quash fears about an imminent default, Greece said Tuesday that it had enough money to pay its bills through mid-November — a month longer than previously indicated — even without the next installment of its bailout package.”
But the news of further austerity measures led to demonstrations in the country on Tuesday.
“Further demonstrations against austerity measures in Greece are taking place, but this time protesters are taking more direct action. They have briefly occupied the office of the Labour Minister and blocked the entrances to several other ministries.”
The Greek crisis is also responsible for a 37% percent plunge in the stock value of Dexia, a French-Belgian bank, on Tuesday. Both French and Belgian governments vowed to help the bank, bailing it out for the second time since 2008.
Transcript by Newsy.
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