New York
London
Hong Kong
Tokyo
Sydney

New Greek Package May Need Up To 145 Billion

EU sources recently said that eurozone governments may have to offer up to 145 billion euros to Athens under a second emergency loan program for Greece. The extra funds are primarily required for helping recapitalise the Greek banking sector once a deal is struck to write down the value of bonds owned by private-sector creditors, the sources said.

"It's mostly because of recapitalisation needs of Greek banks due to PSI," one euro zone official said, referring to bondholder losses termed private sector involvement.

"The agreement of the leaders in October was for 100 billion euros in financing for Greece and 30 billion euros as a sweetener for the debt swap for the private sector. Now it could be 115 billion plus 30 billion," the second source said.

The increase in size of the contribution of euro zone taxpayers to the second Greek financing package was not a done deal yet, the officials said because there was resistance to the idea from some euro zone countries.

"It is difficult to tell if this will be accepted," a third euro zone official said of the higher public financing.

The debts of Greece must be cut from around 160 percent of GDP now to 120 percent of GDP by 2020 in order to be sustainable, according to the International Monetary Fund.

Forex Blog

  • Concho Resources To Buy Riverstone All of the oil and natural gas assets of Three Rivers Operating Company LLC, a portfolio company of private equity firm Riverstone Holdings LLC would be purchased by Concho Resources Inc (CXO.N) for... Read More >
  • USD Falls After Disappointing Jobs Data On Friday, the United States dollar fell against the single currency, euro, and the Japanese yen after lower-than-expected U.S. jobs figures bolstered views the Federal Reserve may yet ease the... Read More >
  • Dow And S&P End Lower For Four Days On Monday, the Dow Jones Industrial Average and S&P 500 end lower for four days s investors took their cues from the disappointing jobs report last week that prompted fresh concerns about the U.S... Read More >
  • China Surprises With Trade Surplus In the month of March, China returned to an export-led trade surplus of $5.35 billion. This indicated that a rebound in the global economy is lifting overseas orders just in time for compensating for... Read More >
  • U.S. Jobs Data Brings Fall For Shares On Monday, global stocks and crude oil fell as investors reacted to the surprisingly sharp slowdown in U.S. jobs growth that was reported a week ago. The data raised concerns about the strength of... Read More >
  • Futures Sent Lower By Disappointing On April 6, stock futures closed lower in brief and holiday-thinned trading after a much weaker-than-expected U.S. job growth for March report. S&P 500 futures fell 1.2 percent to suggest a weak... Read More >