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.
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
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.
DUBLIN — Three years after going cap in hand to international lenders, Ireland got the green light on Thursday to step out on its own as the first eurozone country to exit its bailout program.
The European Commission, European Central Bank and International Monetary Fund signed off on the last part of the 85-billion euro (US$114-billion) aid program, paving the way for Ireland – which has met all major targets – to complete it by the end of the year.
Greece Talks on HoldPierre Moscovici, the European commissioner for economic affairs, warns Debt Talks on Hold Until Greece Agrees Reforms. Greece’s eurozone creditors will not discuss how to get the country’s sovereign debt back on a sustainable path until Athens agrees to a new economic reform programme that would release €7.2bn in desperately needed bailout funds, the EU’s economic chief said on Tuesday.
Greece will reach agreement with its euro zone partners and the International Monetary Fund on a package of reforms next week, which will help to unlock remaining bailout aid, the country's economy minister said on Wednesday. "The agreement will close on (Greek Orthodox) Easter week," Economy Minister George Stathakis told Skai TV.
Here we go again. As we reported yesterday, Greece was due to present to the Troika "how to cut a massive 150,000 public sector jobs: a move which will result in an immediate surge in public unrest, and an exponential jump in strike activity.... Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing.
By Stoyan Bojinov:Investors seemingly went through the full cycle of emotions on Monday as optimism over Spain’s bailout plan in the morning gradually turned to skepticism, paving the way for a steep sell-off on Wall Street in the final hours of trading.