AP - European leaders appeared unable to bring together all the parts of their promised grand plan to contain the debt crisis on Wednesday night, despite progress on key elements, as they struggled to persuade banks to agree to bigger losses on Greek debt.
In what appears to be a "take it of leave it message to Greece", IMF says Time for Compromise is Over, and walks out of talks. Greece’s creditors on Thursday issued their starkest warnings to Athens since the start of a five-month stand-off over the country’s soon-to-expire €172bn bailout, with the International Monetary Fund withdrawing its negotiating team and European leaders saying the time for compromise had ended.
Saxo bank chief economist Steen Jakobsen pinged me with an interesting set of comments regarding Italian interest rates....World has Major Funding GapOur estimation shows that on the 2012 interest payment alone Italy now needs to find additional 10 billion EUR to pay for the rise in interest rates.Some independent trading houses have calculated that the combined funding need for Spain and Italy combined (banks, and national debt) is 400-500 billion EUR per year for next two to three years.
A marathon nannycrat session ended with no deal as the IMF played hardball insisting Greece reduce debt to 120% of GDP by 2020.
Not to worry, Jean-Claude "Lie When It's Serious" Juncker says progress was made.
Brussels (AFP) - Eurozone leaders were thrashing out a Greek bailout deal through the early hours on Monday after Athens received an ultimatum to accept harsh reforms or be forced to leave the single currency.
European Central Bank President Mario Draghi suggested the Greek debt crisis is getting increasingly hard to fix, speaking hours before the ECB maintained its freeze on extra aid for the country’s banks.
Landing in Rome on Wednesday after late-night talks in Brussels, Draghi was asked by Italian journalists if he would really be able “to close the dossier on Greece,” Il Sole 24 Ore and Corriere della Sera reported. “I don’t know,” he’s cited as saying. “This time it’s really difficult.” An ECB spokesman declined to comment on the reports.