Greece races for double debt deal in last-ditch talks

Greece on Friday raced for a double debt-saving deal in parallel negotiations with private creditors and its EU-IMF bailout partners ahead of a default deadline looming in March. Prime Minister Lucas Papademos was scheduled to meet again with global bank group representatives after late-night talks on Thursday as his finance minister held talks with senior EU-IMF auditors on a new eurozone rescue loan. Greece is seeking to slash around 100... [more]

Greece ‘very close’ to deal with private creditors

The Greek government will meet Wednesday with the head of a group of private bank creditors to resume talks on cutting nearly a third of the country’s massive debt, a finance ministry source said. The talks with Charles Dallara, head of the Institute of International Finance, are aimed at writing off about 100 billion euros ($128 billion) in Greek sovereign debt held by private sector financial institutions. Last Friday, the talks... [more]

Greece May Force Creditors to Take Losses

Greece will consider legislation forcing private creditors to take losses on their holdings, if it fails to reach agreement in critical negotiations scheduled to resume on Wednesday, Greek Prime Minister Lucas Papademos said. In an interview with The New York Times published on Wednesday, Papademos said that if Greece did not receive 100 percent participation in a program in which bondholders would voluntarily write down $130 billion of... [more]

Greece, creditors strive to avoid costly default

Greece goes head to head with its creditors on Wednesday in a renewed attempt to break a deadlock in negotiations to slash the country’s debt and stave off default. International private sector creditors represented by the Institute of International Finance (IIF) were set to meet the government in the afternoon. Talks broke down on Friday over the interest rate Greece will offer on new bonds and a plan to enforce investor losses. Ratcheting... [more]

Greeks strike against austerity as EU, IMF visit

Striking Greek workers brought the Athens metro to a standstill on Tuesday and kept ferries docked to protest against austerity as the country’s lenders visited Athens to try to avert a disorderly debt default. EU, IMF and ECB officials start combing through Athens’ books on Tuesday as part of efforts to put together a 130-billion-euro rescue package that Greece needs to stay afloat when a major bond redemption comes due... [more]

Banks say no deal on Greek debt

THE group of major banks negotiating on a write-down of Greek sovereign debt say they have not reached a deal on its debt, including any new write-down. “There has been no agreement on any Greek deal or a specific ‘haircut’,” said Charles Dallara, the head of the Institute of International Finance which is representing the banks in EU negotiations. “We remain open to a dialogue in search of a voluntary agreement.... [more]

Euro unlikely to ‘vanish’ this year: IMF chief

The euro is unlikely to “vanish” this year, IMF chief Christine Lagarde said Friday, but warned a report this month will show the global economy growing slower than the 4.0 percent estimated in September. “Will 2012 be the end of the euro? My answer is, I don’t think so,” she told a press conference during a visit to South Africa. “The currency itself is not likely to vanish or disappear in 2012.” “Will... [more]

Wellink: Greek debt partly written off

It is almost certain that euro countries will have to write off part of their loans to Greece, former Dutch Central Bank President Nout Wellink says. The funds the banks have provided to save Greece are insufficient, Mr Wellink says in an interview with Dutch daily Het Financieele Dagblad. European governments have by now financed such a large part of the Greek debt that a debt restructuring is bound to affect them, Mr Wellink is quoted... [more]

Greek pharmacists, doctors on strike

Greece is already seeing its first strike of the year, with pharmacists and doctors walking off the job to protest health sector reforms that include cuts in drug prices. Pharmacists across the country began a 48-hour strike Monday to protest government plans to trim their profits by cutting the retail prices of drugs. They are also demanding payment of hundreds of thousands of euros owed by social insurance funds. State hospital doctors... [more]

Debt crisis cools Greek gambling ardour

George, a 39-year-old lawyer, is among many Greeks who traditionally sit around a gambling table on New Year’s Eve, hoping to snare a little luck for the months that lie ahead. But with Greece looking at a fifth straight year of recession and thousands of households reeling from waves of pay cuts and tax hikes, the spare income left to Greeks can no longer fuel their prodigious love for gambling. “I’ve sat at card tables... [more]

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