Exclusive: Euro zone ponders delay of 2nd Greek program
(Reuters) - Euro zone finance officials are examining ways of delaying parts or even all of a second bailout program for Greece while still avoiding a disorderly default, several EU sources said on Wednesday.
Delays could possibly last until after the country holds elections expected in April, they said.
While most of the elements of the package, which will total 130 billion euros, are in place, euro zone finance ministers are not satisfied that Greece's political leaders are sufficiently committed to the deal, which requires Athens to make further spending cuts and introduce deeply unpopular labor reforms.
It is also not clear that Greece's debt-to-GDP ratio, which currently stands at around 160 percent, will be cut to 120 percent by 2020 via the agreement, as demanded by the 'troika' of the European Commission, IMF and European Central Bank.
http://www.reuters.com/article/2012/02/15/us-eurozone-greece-package-idUSTRE81E14620120215
EU Says Greek Bond Swap in Aid Plan Requires Time for Investor Decisions.
Greek investors will need time to review settlement details and make decisions as a debt swap takes shape along with a second rescue package for the country, the European Union said.
Euro-area finance ministers need to agree on all elements of the bailout plan and the conditions Greece must meet to receive the bailout, Amadeu Altafaj, spokesman for EU Economic and Monetary Affairs Commissioner Olli Rehn, told reporters today in Brussels. When asked whether the debt swap would be technically able to proceed ahead of a broader deal, he responded that “decisions are first and foremost political.”
Even though a framework and many of the details have been agreed upon, the bond exchange has stalled because of broader clashes between the EU and Greek authorities. EU officials have said Greece needs to show more commitment to promised reforms in order to receive the 130 billion-euro ($170 billion) aid package that was broadly endorsed in October.
http://www.bloomberg.com/news/2012-02-15/eu-says-greek-bond-swap-in-aid-plan-requires-time-for-investor-decisions.html
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