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Greece May Get 11-Year Period To Repay Bailout - Imf

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http://uk.reuters.com/article/idUKTRE6AQ1LR20101127

The EU and the IMF could extend the period in which Greece must repay its bailout loans by five years, to make it easier for it to service its debt, a Greek newspaper said on Saturday, citing an IMF official.

"We have the possibility to extend the repayment period ... from about six years to around 11," the newspaper Realnews quoted Poul Thomsen, the IMF official in charge of the Greek bailout, as saying in an interview.

Greek, EU and IMF officials have repeatedly mooted the possibility of extending the period in which Greece must repay its 110 billion euro ($145.9 billion) bailout loans.

But this is the first time that an IMF official has specified how much the repayment period could be stretched after Greece receives its last instalment in 2013.

Most critical are the first two years, when the bulk of the debt to the EU and IMF falls due. Under current repayment schedules, Greece's gross borrowing needs will balloon above 70 billion euros a year in 2014-15 from around 55 billion euros a year in 2011-2013.

"(As things stand now) Greece must repay the bulk of its 110 billion euro loans in the first two years after the programme expires," Thomsen told Realnews.

"This (the extension) would give markets the signal: 'Don't worry about the repayment of the 110 billion euros, this is not going to affect your claims'," he added.

Am I reading this correctly the IMF want to be paid back with new debt???

Unbelievable.

This austerity is great, the money is never going to be repaid.

I wonder how long after the Irish bailout is finally agreed that we will see Ireland's repayment schedule to be extended.

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No, clearly they are going to flip from borrowing 70bn in 2013 to 2014 to having a surplus in 2015 and then paying off the debt and associated interest. Surely you don't see any problem in achieving this do you?

That's fantastic news. I was momentarily worried this was all sounding a bit insane.

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That's fantastic news. I was momentarily worried this was all sounding a bit insane.

I'm not an economist but I don't see how any of these countries, Ireland, Greece, and so on can pay back the bailouts within a reasonable time. Ireland's austerity measures are designed to reduce the deficit, as I recall. But if the deficit is not reduced to the point of becoming a surplus, which is not even being attempted, then the debt can never be repaid. Correct me if I'm wrong.

Argentina defaulted and survived. So that seems like one way to solve the problem. :blink:

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So when it is paid back Greece will have zero debt? Or is the IMF money being paid back with more debt?

Also, is the repayment adjusted for the rampant devaluation of currency?

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Am I reading this correctly the IMF want to be paid back with new debt???

Unbelievable.

I don't see the problem. The idea is that once they can show the spending is on a sustainable path they will be able to borrow in the market again, and won't need the bailout any more. It may be that the whole idea of a bailout is doomed, but if you expect the bailout to work then repaying the bailout with debt is perfectly sensible.

In the meantime in the real world, the markets appear to be pricing in some sort of a Greek credit event, so if the bailout is repaid at all it might be with another bailout ...

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I don't see the problem. The idea is that once they can show the spending is on a sustainable path they will be able to borrow in the market again, and won't need the bailout any more. It may be that the whole idea of a bailout is doomed, but if you expect the bailout to work then repaying the bailout with debt is perfectly sensible.

In the meantime in the real world, the markets appear to be pricing in some sort of a Greek credit event, so if the bailout is repaid at all it might be with another bailout ...

I feel comforted in knowing now that a successful bailout means the Irish would still be able to deficit spend in perpetuity.

The exponential growth of the debt mountain clearly isn't a problem in the mind of the elites.

It would appear that the financial system is now bailout junkie.

So the Greek bailout has been a bit of a failure then?

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http://uk.reuters.co...E6AQ1LR20101127

Am I reading this correctly the IMF want to be paid back with new debt???

Unbelievable.

This austerity is great, the money is never going to be repaid.

I wonder how long after the Irish bailout is finally agreed that we will see Ireland's repayment schedule to be extended.

The longer the term the more interest earned by the Bankers EXPONENTIALLY!

That's why bankers offer the thickest fekkers in this country 30-50 yr mortgages to pay for their house - up to four times over instead of twice!

You will never see them offering to lower their interest rate of IMF/loan penury first as a solution. They bring countries to a standstill and cause massive more suffering amongst the least well off.

Edited by erranta

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The longer the term the more interest earned by the Bankers EXPONENTIALLY!

That's why bankers offer the thickest fekkers in this country 30-50 yr mortgages to pay for their house - up to four times over instead of twice!

You will never see them offering to lower their interest rate of IMF/loan penury first as a solution. They bring countries to a standstill and cause massive more suffering amongst the least well off.

Yes. Banks don't want capital to be paid off, ever, if they can continue to accrue interest, with a good chance of collecting the interest. Banks love people to owe them money.

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Well look at the UK, a bankrupt despotic nation ran by a collective of criminal bankers, loaning money to a another collective of criminal bankers in Ireland, Portugal, and Italy.

Bring on the revolution, Capitalism owes people very dearly for the chaos about to ensue within Europe.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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