Saving Greece


BRUSSELS, Belgium (DPA) - Friday's news that Greece had managed to strong-arm a large enough number of private lenders to forgive part of its public debt was greeted with relief by European Union officials and with skepticism by financial analysts.

"We have turned a corner in the crisis. We are sailing towards calmer waters,'' EU President Herman Van Rompuy posted on the micro-blogging website Twitter.

EU Economy Commissioner Olli Rehn declared himself "very satisfied'' that about 83 percent of creditors had agreed to take part in a bond-swap deal expected to ultimately shave about 100 billion euros (132 billion dollars) off Greece's debt mountain.

The participation rate is expected to rise over 95 percent once the Greek government triggers so-called collective action clauses (CAC), which would force losses on the remaining part of bond holders that have so far refused to join the debt forgiveness exercise.

The CAC decision - which eurozone finance ministers have confirmed will have to be taken - might cause a form of insurance against default known as credit default swaps (CDS) to be paid out to some Greek bond holders. Such a scenario was seen as worrying in the past months, because when CDS were paid out after the collapse of US investment bank Lehman Brothers, a chain reaction led to the global financial crisis of 2008-2009.

This time, however, experts say markets are prepared and no panic is expected. The problems with the latest Greek rescue plan are different, they say. All the new rescue package will do is "provide Greece and the rest of the eurozone with a bit of time, at best,'' Ben May from the London-based Capital Economics research outfit predicted.

Sony Kapoor, head of the Re-Define financial think tank and a well-known critic of the eurozone's response to its debt crisis, is convinced that a third bailout for Greece is inevitable.

Simon Penn, an analyst with Swiss bank UBS, was less resolute. "As things stand, people would be about 50-50'' about the likelihood of a new bailout, he told DPA.

The latest aid package is meant to cover the country's needs until 2014. But few believe that after that date Athens will be able to finance its debt on its own. "They are not going to be able to come back to the market in 2015,'' Penn said. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Saving Greece
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.