Eurozone 'agreement' on Greece debt

[webfact]

Eurozone 'agreement' on Greece debt

BRUSSELS: -- Eurozone leaders reach "agreement" with Greece on new debt deal, Belgian prime minister says, after marathon talks

EU President Donald Tusk said the agreement was unanimous. He tweeted that a bailout programme was "all ready to go" for Greece, "with serious reforms and financial support".

Full story: http://www.bbc.com/news/world-europe-33503955


-- BBC 2015-07-13

[webfact]

Greece reaches deal with creditors, avoids euro exit
PAN PYLAS, Associated Press
RAF CASERT, Associated Press

BRUSSELS (AP) — Greece reached a deal with its European creditors Monday, pledging stringent austerity to avoid an exit from the euro and the global financial chaos that could have followed.

The deal calls for Greeks, already reeling from harsh measures and economic decline, to cut back even further in exchange for more loans without which its financial system would surely collapse. The deal, which still needs approval from Greece's parliament, will be the country's third bailout in five years.

To get to a deal, Greek Prime Minister Alexis Tsipras had to overcome the fundamental mistrust of many of his allies among the 18 other countries that use the euro, known as the eurozone. Just a week earlier, at his urging, Greeks had voted in a referendum to reject many of the measures he agreed to Monday, and the deal forced him to renege on many of his election promises.

"We managed to avoid the most extreme measures," Tsipras said. "Greece will fight to return to growth and to reclaim its lost sovereignty."

Both sides acknowledged the bitter disputes that kept the leaders at odds for months, and kept them negotiating nine hours past a Sunday midnight deadline. German Chancellor Angela Merkel said that along with the deal, "trust needs to be rebuilt."

"Greece has a chance to return to the path of growth," she said, but "it will be a long road."

French President Francois Hollande said it was a path well worth taking. He said the Greek parliament would convene within hours to adopt the reforms called for in the plan, and he celebrated Greece's continued membership in the euro. For the eurozone to have lost Greece, Hollande said, would have been to lose "the heart of our civilization."

Tsipras had been holding out for a better deal to sell to his reluctant legislature in Athens this week, even as financial collapse grew closer by the day.

A breakthrough came in a meeting between Tsipras, Hollande, Merkel and EU President Donald Tusk, after the threat of expulsion from the euro put intense pressure on Tsipras to swallow politically unpalatable austerity measures.

"We took the responsibility of the decision to be able to avert the harshest outcome," Tsipras said. "We managed to avert the demand to transfer Greek assets abroad, to avert the collapse of the banking system."

The deal includes commitments from Tsipras to push a drastic austerity program including pension, market and privatization reforms through parliament as soon as possible. In return, the 18 other eurozone leaders committed to start talks on a new bailout program.

"The Greeks have to show they're credible, show that they mean it," said Jeroen Dijsselbloem, president of the eurogroup of eurozone finance ministers and a longtime critic of the Tsipras government.

A Cypriot official said the creditors would look into bridge financing for Greece later Monday, suggesting that the deal could pave the way for the European Central Bank to extend emergency liquidity assistance to Greek banks. Without it, they risk running out of cash this week. The official spoke only on condition of anonymity because he was not authorized to discuss the deal publicly.

If the talks had failed, Greece could have faced bankruptcy and a possible exit from the euro, the European single currency that the country has been a part of since 2002. No country has ever left the joint currency, which launched in 1999, and there is no mechanism in place for one to do so.

Greece had requested a three-year, 53.5 billion-euro ($59.5 billion) financial package, but that number grew larger by the tens of billions as the negotiations dragged on and the leaders calculated how much Greece will need to stay solvent.

The leaders of the eurozone estimated the needs of Greece to stand somewhere around 85 billion euros.

Greece has received two previous bailouts, totaling 240 billion euros ($268 billion), in return for deep spending cuts, tax increases and reforms from successive governments. Although the country's annual budget deficit has come down dramatically, Greece's debt burden has increased as the economy has shrunk by a quarter.

The Greek government has made getting some form of debt relief a priority and hopes that a comprehensive solution will involve European creditors at least agreeing to delayed repayments or lower interest rates.

Greek debt stands at around 320 billion euros ($357 billion) — a staggering 180 percent or so of the country's annual gross domestic product. Few economists think that debt will ever be fully repaid. Last week, the International Monetary Fund said Greece's debt will need to be restructured.
___

Menelaos Hadjicostis and John-Thor Dahlburg in Brussels contributed to this story.


-- (c) Associated Press 2015-07-13

[webfact]

Eurozone summit reaches deal on Greek bailout

BRUSSELS (AP) — The latest from Greece's financial crisis (all times local):
___

9:10 a.m.

European Union President Donald Tusk says the bailout deal for Greece could pave the way for the country to remain a member of the euro.

In a tweet Monday, Tusk said eurozone leaders agreed unanimously on a new bailout for Greece that includes "serious reforms" and "financial support."

Details of the agreement between Greece and its creditors have yet to emerge.

The Greek government made a request last week for a three-year, 53.5 billion-euro ($59.5 billion) financial rescue from Europe's bailout fund. During negotiations that stretched beyond a weekend deadline into Monday morning, Its creditors indicated that Greece will need tens of billions more than that to stay solvent.

Greece's economy is in freefall and its banks are facing collapse.

___

9 a.m.

Summit chair Donald Tusk says eurozone leaders have unanimously agreed on a bailout deal for Greece. In a tweet Monday, Tusk said the European bailout program for Greece includes "serious reforms" and "financial support."

___

8:35 a.m.

The European Union's top economy official says he's hopeful for a deal to keep Greece in the euro — and that the German and French leaders will be at the center of it.

Pierre Moscovici played down ideological differences among Greece's European creditors on Monday, telling France's RTL radio that the marathon overnight negotiations show there is a "shared willingness to ensure that Greece remains in the euro."

Earlier in the negotiations there had been indications of splits among the European countries, with German Chancellor Angela Merkel demanding tough conditions before releasing aid while French President Francois Hollande prioritized unity among the nations that use the euro.

Moscovici said Merkel and Hollande have "solid and direct" relations despite ideological differences and that "there is no solution for Europe" without agreement between the eurozone's two leading powers.

___

8 a.m.

Greece and its creditors may be working past their self-imposed deadline, but currency traders don't seem too alarmed about the uncertainty in the eurozone.

The euro was up 0.2 percent Monday at $1.1140.

Craig Erlam, senior market analyst at OANDA in London, said investors appear fairly optimistic that the two sides will soon strike a deal, at least in principle.

He says that with Greek banks on the verge of collapse, "the country really has run out of time."

Greece's banks have been closed for two weeks and cash-machine withdrawals have been limited to 60 euros a day as the European Central Bank rejected calls to increase the amount of emergency liquidity for Greek banks. Many believe they will run out of cash this week.
___

7:35 a.m.

Talks aimed at securing Greece's future in the euro have dragged into Monday with few signs that a meeting of the 19 leaders of the eurozone is coming to an end.

More than 15 hours after they started their discussions, Greek Prime Minister Alexis Tsipras appears to be holding out against two demands from his creditors: one related to the involvement of the International Monetary Fund in any bailout agreement, and the other a proposal that Greece set aside 50 billion euros ($56 billion) worth of state-owned assets in a fund for eventual privatization.

Summit chair Donald Tusk has presented a "compromise proposal," details of which remained sketchy Monday morning.

Any deal would see Greece accepting more austerity in exchange for a bailout to prevent its economy from collapsing.


-- (c) Associated Press 2015-07-13

[puck2]

I read the same in a German magazin. The Premier of Luxemburg twittered:

after 17h of negotiations we are close to an agreement. Europe is strong.

Let us read the results

Edited July 13, 2015 by puck2

[TheAppletons]

I read the sam ein a German magazin, The Premier of Luxemburg twittered:

after 17h of negotiations we are close to an agreement. Europe is strong.

Let us read the results

Europe may be strong but I get the feeling that Greece is primed to take a beating.

[Basil B]

what next, the Greek parliament to vote on it and then a referendum???

within days we will be back where we started.

Edited July 13, 2015 by Basil B

[mmh8]

greece says yes we have a can, let us find a way to kick it down the road, you kick, then we kick, then you kick. at the moment the onus is on you to kick, next time we do the kick.

[webfact]

Eurozone leaders reach a deal to negotiate a new bailout for Greece, says EU Council President. /CNN

[Usernames]

Effectively, this is a decision not to decide, which is the worst of all worlds. For the Greeks and for the Europeans paying their way. We all know what will happen. The Greeks will pass laws and then ignore them. Sort of like some place else most of us are familiar with.

[NeverSure]

"Reach a deal to negotiate", LOL. I thought they had that in spades.

[worgeordie]

Where did all the money go?, now they are going

to give them more money,they are never going to

be able to pay off what they already owe,so give

them more !

regards Worgeordie

[JockPieandBeans]

Reached a deal ? Perhaps.

And this deal includes “strict conditions”, Tusk warns.

Several national parliaments will need to give their approval, including the Greek parliament, says Tusk.

Democracy EU style.

[Anthony5]

what next, the Greek parliament to vote on it and then a referendum???

within days we will be back where we started.

Exactly, only yesterday the condition was that he had to get it through Greek parliament by Wednesday, so now they gonna hand out the money before the conditions are approved by parliament.

Then next day Greek parliament disapproves.

Time to get out the popcorn once again.

Edited July 13, 2015 by Anthony5

[webfact]

BRUSSELS (AP) - European Commission chief Juncker says after deal with Greece 'there will be no Grexit.'

[Steely Dan]

Very predictable, just as was the Iran nuclear deal. Evidentially pretense is preferable to reality. Both deals will unravel leading to even larger problems than had they never been arrived at.

[webfact]

BRUSSELS (AP) - EU's Tusk says agreement with creditors will allow Greece to get 'back on track.'

[otherstuff1957]

So, the EU is going to loan Greece more money to pay off the loans that they cannot pay off now. When these new loan payments are due we will see a repeat of the current mess. This is just throwing good money after bad.

The leaders of the EU must know this as well, they are either leaving this problem to their successors or they have decided to eternally support Greece's finances just to keep them in the EU.

Edited July 13, 2015 by otherstuff1957

[Usernames]

This is why people despise politicians. I would say something about the appeal of Mr. T in America in this regard, but that would be off topic. The EU and Greek pols are both doing things the people that elected them don't want them to do. Really, where is a guillotine when you need one?

[Usernames]

So, the EU is going to loan Greece more money to pay off the loans that they cannot pay off now. When these new loan payments are due we will see a repeat of the current mess. This is just throwing good money after bad.

The leaders of the EU must know this as well, they are either leaving this problem to their successors or they have decided to eternally support Greece's finances just to keep them in the EU.

We live in an age of wimps in the West. What did you expect?

[webfact]

BRUSSELS, July 13. /TASS/. Greece will receive €82-86 billion in three years, German Chancellor Angela Merkel said Monday.

[webfact]

BRUSSELS (AP) - Merkel says trust with Greece 'needs to be rebuilt,' backs negotiations with 'full conviction'

[webfact]

Entire Europe to Benefit From Agreement on Greek Crisis - Hollande

BRUSSELS: -- All of Europe will benefit from the agreement on the Greek crisis that was reached during the Eurozone summit, Francois Hollande said.

The leaders of the Eurozone have reached a unanimous agreement on Greece’s economic crisis, European Council President Donald Tusk said Monday.

Full story: http://sputniknews.com/europe/20150713/1024541908.html

-- SPUTNIK 2015-07-13

[Basil B]

what next, the Greek parliament to vote on it and then a referendum???

within days we will be back where we started.

Exactly, only yesterday the condition was that he had to get it through Greek parliament by Wednesday, so now they gonna hand out the money before the conditions are approved by parliament.

Then next day Greek parliament disapproves.

Time to get out the popcorn once again.

The Greeks have been playing games far too long, hence there will not be a single Euro until Wednesday, and the Greek parliament has to accept the terms in full by then or no deal, Greek banks are almost out of cash by now, ATM's are running out, they really have no alternative now.

They do have a number of tricks left like dissolving parliament and calling a general election but I do not see that working, I think it is very clear now, they are not going to get a single Euro until the terms are ratified.

Edited July 13, 2015 by Basil B

[Usernames]

Candyasses, the bunch of them.

[webfact]

Greek bailout: Europe strikes deal after marathon talks

NEW YORK: -- Europe said Monday it will negotiate a new bailout for Greece after the country agreed to enact deep economic reforms under close supervision by its creditors.

The deal -- if ratified -- should prevent a chaotic Greek exit from the euro, an unprecedented event that would have shaken Europe to its core.

"EuroSummit has unanimously reached agreement," tweeted Donald Tusk, president of the European Council and summit chairman.

Leaders of the 19 nations that use the euro hammered out the agreement at a marathon overnight meeting in Brussels, after weeks of frantic diplomacy sparked by Greece walking away from a previous bailout program.

Full story: http://money.cnn.com/2015/07/12/news/economy/greece-bailout-europe-conditions/index.html


-- CNN 2015-07-13

[webfact]

BRUSSELS (AP) - Merkel says eurozone willing to give Greece debt relief but rules out cut in debt level. .

[ggold]

If the Greek government vote yes on this deal they will have sold their country to the EU. They will have to put 50billion of state assets into a fund the EU will control, then privatise these assets and use 50% of the sales to pay off debt. the other 50% for Greece to reinvest.

I really hope they vote against, because this will end badly which ever way it goes. Just delaying the inevitable, IMO.

Interesting to see if Tsipras is still PM come Wednesday?

[webfact]

BRUSSELS (AP) - Merkel says eurozone agreement with Greece based on Athens asking for further IMF help.

[kotsak]

This will gonna be balls deep..

[brain150]

Where did all the money go?, now they are going

to give them more money,they are never going to

be able to pay off what they already owe,so give

them more !

regards Worgeordie

The answer is pretty simple:

About 90% of all the bail out money went directly to the big banks !

The only thing that happened is to transfer the depth from public lenders to now sovereign lenders [meaning the tax payers of europe] !

This is all just a big theft from the banks in accordance with the EU ...

Mario Dragi [head of the ECB] comes from Goldman Sachs ... and he didn't forget where he came from.

For the rest of the story:

The simple question would be:

What did Greece actually get from the banks ?

As banks create money out of nothing, why do they actually have to give something back they have never received ?

The monetary system is the problem ... not Greece !!!