Offer Of Greek Private Bond Holders Rejected By Euro Zone Ministers

By Author: Peter Clove
Total Articles: 10
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A few days earlier the ministers of the Euro zone had rejected the improper offer that was made by the private bond holders for the revamping of the debts of the Greek. The minister sends the negotiator back as they were of the fear that there was a threat that this default of the Greece would go on a high. The meeting was held in the town Brussels where the ministers said that they were not in a state to take a coupon of 4 percent that had a long term debt related bonds that had to be exchanged with the Greek holdings that already existed.
The banks as well as the various other institutions that have a representation by IIF that is Institute of International Finances held a view that 4 percent of the coupon was what they would accept in the least terms if the debts were being written of 50 percent with the nominal value.
And contrary to all this, it is not possible for Greece to pay up only for a coupon not more than 3.5 percent as they are not prepared for it. On the meeting that was held a few days back, in it the ministers of the euro zone came out in full support of the government of the Greece and their position. ...
... It is that kind of a position that is also supported by International Monetary Fund.
Jean Clause Juncker, Chairman, of the Euro group countries held the view that Greece should look out for such kind of a deal along with its private bond holders in which the rate of interest of the replacement bonds that was very much below 4.0 percent. If this happens then the interest would on its own come down to below the figure of 3.5 before the year 2020. Apply for 2500 loan and get cash with no hassle.
The total debt that Greece is going through in the present scene is around 100 billion Euros and the main aim of this restructuring is to reduce it. The officials of Eu as well as IMF think that if the GDP is cut down from 160 to 120 that it would be possible that the economy of Greece could be managed. But the government of Greece is not looking very serious in this regard of lowering their budget deficit and bringing it back in shape. It seems that the deadline to achieve it by 2020 seems to be unreachable.

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