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European Union Talks On Greek Debt As Imf Flies In

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http://www.guardian.co.uk/business/2011/jan/30/greek-debt-crisis-imf-talks

The European Union is engaged in frantic behind the scenes talks to reduce Greece's debt as international monitors fly into Athens this week. There is growing concern that the eurozone's weakest state will be unable to end its worst crisis in decades, without a sovereign default.

Plans to buy back Greek debt at a discount – a scenario that economists call restructuring by stealth – are being given "urgent consideration," bankers and EU officials say.

The three-stage scheme, which has dominated fringe debate at Davos, would allow the near-insolvent country to purchase Greek bonds owned by the European Central Bank at 75% of their nominal value by borrowing from the European Financial Stability Facility, the bloc's rescue fund, at depressed market rates.

"There is a strong will to think about how the EFSF can be more robust," Greece's prime minister, George Papandreou, said at the World Economic Forum.

The arrangement, despite months of denials of a Greek write-off, was likened by the authoritative Sunday Vima newspaper to the Brady plan which rescued Latin America from bankruptcy in the 1980s.

If adopted, the paper said, the measures would "re-profile" about two thirds of the country's total €330bn (£283bn) debt by the end of the year.

Under the scheme, the EU, International Monetary Fund and ECB – which bailed out Athens to the tune of €110bn after borrowing costs to service the debt hit prohibitively high levels last May – would give Greece breathing space by prolonging the maturity of loans by an extra 30 years.

Shocking the Greek debt pile is too large and the only option is default. Totally unexpected....

So they've contained the problem by not dealing with it effectively from the off. An extra 30 years makes no difference Greece doesn't have the income.

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http://www.guardian.co.uk/business/2011/jan/30/greek-debt-crisis-imf-talks

Shocking the Greek debt pile is too large and the only option is default. Totally unexpected....

So they've contained the problem by not dealing with it effectively from the off. An extra 30 years makes no difference Greece doesn't have the income.

Wont the demographics make this debt even more difficult to pay as time goes by?

The article isnt clear about who is going to lose out in this default by stealth. Someone will lose. As I dont know, then I think that there is a fair chance that it will be me.

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  • 312 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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