(Image source: Wikimedia Commons)

 

BY NATHAN BYRNE

ANCHOR LAUREN GORES

Are Greeks hurtling toward tragedy, or will their bailout saga have a happy ending? A resolution to this long stretch of austerity measures and approval processes relies on how much Greece’s financial backers can take, says euronews

REPORTER: “Is it the end of the marathon? ... Much still depends on private lenders accepting deeper losses.”
AUSTRIAN FINANCE MINISTER (translated): “We’re now asking the private sector to sign the deal that’s on the table…”

Analysts predict a long road following this initial agreement. BBC News reports

“For some of Europe's biggest banks, that means heavy losses. … Many foreign banks have already accepted that their investments in Greece are now worth just a fraction of their original value, irrespective of the latest deal. … Analysts are now wondering whether the latest deal will be enough. The Greek economy is in recession, making it even more difficult for the nation to pay its debts.”

Critics are skeptical about the chances of success. An opinion writer for China Daily says the bailout won’t end Greece’s pain, because…

“…more than 90 percent of Greeks expressed deep opposition to the interim government, criticizing the two-year austerity and reform drive underway as the wrong way to tackle the debt crisis. … the soaring unemployment has buried a ticking bomb …”

European stocks responded slowly Tuesday morning. The Wall Street Journal describes the market’s reaction to the Greek bailout.

“…investors were cautious, concerned that the general election, expected in April, may bring in a government unwilling or unable to implement stringent austerity measures.”

Greece met a set of strict requirements before winning the eurozone’s approval for this round of funding, but reporters for Bloomberg say more challenges lie ahead.

“Unless 90 percent of investors sign up to the bond swap, Greece may need to use force to secure the debt relief, entering legal difficulties. … The International Monetary Fund also must decide how much it is willing to contribute to the package. Greece has to enact the prescribed austerity and economic reforms that could prove too much to deliver amid a fifth year of recession, and risk falling foul of social unrest...”

According to the U.K.'s Financial Times — forced austerity, rising debt levels and financial restructuring could lead Greece toward needing a third bailout.

Greek Bailout Deal Met With Questions

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Feb 21, 2012

Greek Bailout Deal Met With Questions

(Image source: Wikimedia Commons)

 

BY NATHAN BYRNE

ANCHOR LAUREN GORES

Are Greeks hurtling toward tragedy, or will their bailout saga have a happy ending? A resolution to this long stretch of austerity measures and approval processes relies on how much Greece’s financial backers can take, says euronews

REPORTER: “Is it the end of the marathon? ... Much still depends on private lenders accepting deeper losses.”
AUSTRIAN FINANCE MINISTER (translated): “We’re now asking the private sector to sign the deal that’s on the table…”

Analysts predict a long road following this initial agreement. BBC News reports

“For some of Europe's biggest banks, that means heavy losses. … Many foreign banks have already accepted that their investments in Greece are now worth just a fraction of their original value, irrespective of the latest deal. … Analysts are now wondering whether the latest deal will be enough. The Greek economy is in recession, making it even more difficult for the nation to pay its debts.”

Critics are skeptical about the chances of success. An opinion writer for China Daily says the bailout won’t end Greece’s pain, because…

“…more than 90 percent of Greeks expressed deep opposition to the interim government, criticizing the two-year austerity and reform drive underway as the wrong way to tackle the debt crisis. … the soaring unemployment has buried a ticking bomb …”

European stocks responded slowly Tuesday morning. The Wall Street Journal describes the market’s reaction to the Greek bailout.

“…investors were cautious, concerned that the general election, expected in April, may bring in a government unwilling or unable to implement stringent austerity measures.”

Greece met a set of strict requirements before winning the eurozone’s approval for this round of funding, but reporters for Bloomberg say more challenges lie ahead.

“Unless 90 percent of investors sign up to the bond swap, Greece may need to use force to secure the debt relief, entering legal difficulties. … The International Monetary Fund also must decide how much it is willing to contribute to the package. Greece has to enact the prescribed austerity and economic reforms that could prove too much to deliver amid a fifth year of recession, and risk falling foul of social unrest...”

According to the U.K.'s Financial Times — forced austerity, rising debt levels and financial restructuring could lead Greece toward needing a third bailout.

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