Greece a 'step away' from debt deal

[DCBob]

Greece says it is ‘‘a step away’’ from a major debt writedown as it resumes talks with private creditors to escape a looming default and stem further turmoil in the eurozone.
-snip-
‘‘We are a step away from concluding procedures on the PSI,’’ said Venizelos, just before the start of talks, adding that the negotiations ‘‘were difficult and delicate’’.

The third round of talks between Athens and private creditors, which began on Thursday, aims to reach agreement on a voluntary exchange of bonds that would wipe 100 billion euros ($124 billion) off the country’s debt of 350 billion euros.

The Private Sector Involvement (PSI) deal under discussion would see the creditors agree to a discount or ‘‘haircut’’ of at least 50 per cent on the 200 billion euros in debt they hold.

Read more: http://www.smh.com.au/business/world-business/greece-a-step-away-from-debt-deal-20120128-1qmq1.html

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Looks like they are finally nearing an agreement. Even so this will not end the crisis as Greece's economy is in tatters and there is no end in sight. Futhermore there are even more demands for additional austerity measures which will only add to Greece's problems. The only way for Greece to get out of this mess is for them to do this deal and then begin to rebuild their economy as fast as possible. More austerity will not do that.

[southernyankeebelle]

1. You know it is so sad for the people. They elect officials and they screwed it up.

[unkachuck]

2. "...a step away from concluding procedures on the PSI..."

....PSI? They're the problem, out-of-control capitalism created the problem....

....capitalism, it buys and sells dictatorships, it buys and sells democracies, it's just a big legal drug cartel with its main addictive product being greed....

....until we change the global economic model into something that benefits the majority of people, we're destined to stumble from created crisis to crisis, and that includes the Greeks....

[Prometheus Bound]

3. The BBC says Merkel now thinks Greece will default.

according to UK foreign office sources.

[sendero]

6. I don't think..

... they have much choice. Default will be difficult, but continuing to play the Eurozone game even worse.

In fact, in every country where the bankers think they can get their money back by enforcing decades of "austerity" there is a pretty good chance the people will tell them to pack sand.

[dipsydoodle]

4. Hope they're not a doing quick step then

because slow , slow will inevitably follow.

[DCBob]

5. It looks like this last step is the most difficult.

Still no deal afaik.