Sunday's EU Summit Unlikely To Resolve Crisis
Saturday, October 22, 2011
Tweet
European leaders' meeting scheduled on Sunday is unlikely to see any major solutions to Greece debt problem and scaling up of the bailout fund, while banks are set to face a shortage of capital to withstand more than expected writedowns from Greek debt.
The next meeting, expected to take place on Wednesday, would possibly result in a breakthrough on this continuing debt problem and ring-fencing Greece from other peripheral economies.
Luxembourg's Prime Minister Jean-Claude Juncker, who chaired the meetings of Eurozone finance ministers on Saturday, said they reportedly agreed that Greek bond holders will have to accept losses more than they consented in July.
Accordingly, banks' writedown from exposure to Greece debt will rise up to even 60 percent. In July, banks agreed for 21 percent writedowns. Finance ministers from the euro area met Friday, a day before European finance ministers' meeting in Brussels.
Eurozone finance ministers, jointly known as the Eurogroup, agreed to release the sixth tranche of bailout funds to Greece, with actual disbursement likely to take place in the first half of November. Despite disagreement between Germany and France over the bailout fund, called the European Financial Stability Facility, they made progress on some points.
Finance ministers from euro area are expected to gather again on Saturday after EU27 finance ministers' meeting. EU finance ministers are set to discuss how to capitalize banks and make them more resilient to a possible Greek default.
Juncker's spokesman reportedly said that German Chancellor Angela Merkel and French President Nicolas Sarkozy would meet tonight in the presence of officials from the EU, the European Central Bank and the International Monetary Fund.
The crisis in the Eurozone is a real danger to all economies of Europe, including Britain, U.K. Chancellor George Osborne said today in Brussels. He called for a comprehensive solution that will address the root cause of the crisis.
Source : rttnews.com
The next meeting, expected to take place on Wednesday, would possibly result in a breakthrough on this continuing debt problem and ring-fencing Greece from other peripheral economies.
Luxembourg's Prime Minister Jean-Claude Juncker, who chaired the meetings of Eurozone finance ministers on Saturday, said they reportedly agreed that Greek bond holders will have to accept losses more than they consented in July.
Accordingly, banks' writedown from exposure to Greece debt will rise up to even 60 percent. In July, banks agreed for 21 percent writedowns. Finance ministers from the euro area met Friday, a day before European finance ministers' meeting in Brussels.
Eurozone finance ministers, jointly known as the Eurogroup, agreed to release the sixth tranche of bailout funds to Greece, with actual disbursement likely to take place in the first half of November. Despite disagreement between Germany and France over the bailout fund, called the European Financial Stability Facility, they made progress on some points.
Finance ministers from euro area are expected to gather again on Saturday after EU27 finance ministers' meeting. EU finance ministers are set to discuss how to capitalize banks and make them more resilient to a possible Greek default.
Juncker's spokesman reportedly said that German Chancellor Angela Merkel and French President Nicolas Sarkozy would meet tonight in the presence of officials from the EU, the European Central Bank and the International Monetary Fund.
The crisis in the Eurozone is a real danger to all economies of Europe, including Britain, U.K. Chancellor George Osborne said today in Brussels. He called for a comprehensive solution that will address the root cause of the crisis.
Source : rttnews.com
Labels:
Daily Market Recaps Articles
