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Apr 3
Greece Says Need New 45 Billion Euro Loan From IMF & EU
Friday, 10 June 2011 05:19

yunani2EU governments and the International Monetary Fund / IMF will lend as much as € 45 billion extra ($ 65 billion) to Greece under the expanded plan to avoid the first default in the euro area.

Estimated Greek EU financing needs as much as 170 billion euros in the year 2012 to 2014. This will be met by borrowing and added about 57 billion euros in the rest of the bailout aid last year, about 30 billion euros from the sale of assets and around 30 billion euros in rollovers by creditors.

Structuring rollovers remain the most sensitive part of this package by warning European Central Bank President Jean-Claude Trichet at a teleconference yesterday that called for Germany for the exchange of debt securities may lead rating agencies to Greece in the default state.

Greek bonds fell for a third day and the price of insuring against the standards of the Greek debt reached record highs. Pressure on the Greek plan for the sale of assets and cut the budget plan demanded by the EU and the IMF as a condition for aid bailout.

Shouts of "not going to sell" audible outside the Ministry of Finance in Athens because of Prime Minister George Papandreou planned emergency plan, which includes the sale of shares of Hellenic Postbank SA and the Agricultural Bank of Greece SA.

Chancellor Angela Merkel of Germany, Greece's largest aid donors, should support the bond holders as part of the cost in Germany to persuade parliament to provide new loans in packages of three years to other countries that have been affected by the financial crisis even after giving 110 billion euros in 2010.

Greece's debt has become the world's most expensive costs exceed Venezuela since April this year when Moody's put the greek will default about 50 percent in five years.

Merkel tried to persuade members of the German parliament for the Greek aid package, after returning to Berlin from the White House meeting in which President Barack Obama says Germany holds the key to preventing a "default spiral out of control" in Europe.

Germany wants the bondholders to purchase approximately € 30 billion of new bonds to replace the Greek bonds maturing during the next three years. Any arrangement that appears to force private investors to retain ownership of their Greek bonds can be classified as a default, sending a signal losses through the banking system.

It would be "a big mistake to start a decision that would trigger a credit event," said Trichet told reporters today in Frankfurt. "We exclude all elements that are not voluntary."