Thursday, June 2, 2011

Reuters Reporting A New Greek 3 Year "Adjustment Plan" Has Been Agreed On, Can Kicked Down The Road Another 3 Years.....

According to a source, the program will involve new international funding to mid-2014, apportionment yet to be agreed. According to a source senior Eurozone officials agree in principle on new 3-year adjustment plan for Greece. The private sector will participate in new Greek rescue plan, details still being worked out...

Private sector involvement will be limited to avoid a credit event....

Congratulations Europe: you just screwed your taxpayers, but at least bought your insolvent banks 3 more years of bizarro world existence.

From Reuters:

Senior euro zone officials have agreed in principle on a new three-year adjustment program for Greece to run until mid-2014 and involve increased external funding, a source close to the negotiations said on Thursday.

The Economic and Financial Committee (EFC) of deputy ministers and senior officials of the 17-nation currency zone approved the Greek program in principle in talks in Vienna that ended after midnight, the source said.

The second program for Greece, which will effectively supersede the 110 billion euro ($160 billion) bailout agreed in May 2010, will involve some participation of private sector investors but limited to avoid triggering a credit event, the source said.

Details of that involvement, and the apportionment of the additional official international funding, remain to be worked out in time for a June 20 meeting of euro zone finance ministers, the source said.

He declined to comment on figures but said the program would cover Greece's funding needs on the assumption that it could not return to private capital markets in 2011 or 2012. The original bailout envisaged Athens raising 27 billion euros on the markets next year and 38 billion in 2012.

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