Cyprus agreed to the outlines of an international bailout, paving the way for 10-billion euros (US$13-billion) of emergency loans and eliminating the threat of default.
The accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area.
“It’s in best interest of the Cyprus people and the European Union,” Cyprus President Nicos Anastasiades told reporters.
Brussels (AFP) - Greece will restart crunch talks with its creditors on Thursday in a bid to save Athens from default, hours after Prime Minister Alexis Tsipras lashed out at lenders for rejecting his reform plans.
On Friday in "Don’t Tell Merkel, Greek Banks Need Another €10-14 Billion Bailout," we warned that the €53 billion aid request from Greece was likely only part of the story. The country’s banks, which were (and still are) on the verge of collapse would need to be recapitalized and according to one banking official who spoke to Reuters, that cost of that recap would be somewhere in the neighborhood of €14 billion.
Brussels (AFP) - Greece early Friday laid out details of a new bailout plan to save it from the brink of financial collapse, offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan from the eurozone.
Euro-area finance ministers agreed in principle to extend a 7 billion-euro (US$7.6 billion) bridge loan to Greece, according to an official familiar with the decision.
The loan is due to be announced on Friday once national parliaments have voted on the bailout deal that Prime Minister Alexis Tsipras signed up to on Monday, the official said, asking not to be named because the conversations were private. The loan will come from the European Financial Stabilisation Mechanism, the European Union’s rescue fund, the official said.
ATHENS — Greece cannot make an upcoming payment to the International Monetary Fund on June 5 unless foreign lenders disburse more aid, a senior ruling party lawmaker said on Wednesday, the latest warning from Athens it is on the verge of default.
Prime Minister Alexis Tsipras’s leftist government says it hopes to reach a cash-for-reforms deal in days, although European Union and IMF lenders are more pessimistic and say talks are moving too slowly for that.
German Chancellor Angela Merkel has worked out a deal with Spain to rescue its banks.
Global equity markets and commodities, especially gold and silver, have cheered the news.
However, the bold market has let out a big yawn. The yield on Spanish 10-year treasuries dropped less than 3 basis points to 6.281%, hardly a sustainable rate.
Please consider Germany finalizing face-saving aid deal for Spain
London (AFP) - Europe's main stock markets fell on Thursday ahead of crunch European Union talks over Greece, as hopes faded of a deal between Athens and its creditors over bailout repayments, dealers said.
ATHENS/BRUSSELS — Wide differences over pension and labour reforms continued to dog intensive negotiations between Greece’s leftist government and its international creditors despite progress in other areas as the country’s cash position becomes increasingly critical.
Government spokesman Gabriel Sakellaridis sounded the alarm on Monday, saying that while Athens intended to meet all its payment obligations, including nearly 1 billion euros to the IMF in May, it needed fresh funds before the end of the month.