Global Financial Crisis (4 Viewers)

JBF

اختك يا زمن
Aug 5, 2006
18,451
The debt crisis in Greece looks set to dominate a meeting of the International Monetary Fund (IMF) in Washington.

Greek Finance Minister George Papaconstantinou is due to hold talks with IMF head Dominique Strauss-Kahn and EU economy commissioner Olli Rehn.

On Friday, Greece asked for an EU-IMF bailout of its debt-ridden economy.

Ahead of the meeting, the Group of 20 big economies said the world was emerging faster than expected from its deep recession.

After talks in Washington on Friday, G20 finance ministers said the pace of the recovery was largely due to the huge amounts of government money pumped into national economies.

Debt due

Saturday's focus is set to be on the IMF meeting and consideration of Greece's request for emergency loans totalling 40bn euros ($53bn; £35bn) in the first year.

Nations using the euro would contribute 30bn euros with the rest coming from the IMF.

The terms of the loans have not been agreed, but Mr Strauss-Kahn has said the IMF will "move expeditiously" in response to Greece's appeal.

Mr Rehn said he thought the EU-IMF package could be completed by early May.

The funds are needed later that month when a large tranche of Greece's debt comes due for renewal.

German officials have said Berlin will do its bit.

But there has been public opposition to funding a bail-out and Chancellor Angela Merkel said any aid would come with "very strict conditions", including a credible savings plan.

The Greek government has already taken austerity measures, including cutting government workers' pay, freezing pensions and raising taxes.

The cuts have proved unpopular, prompting strikes and demonstrations.

There is rising anger at the involvement of the IMF and opposition to the bailout is increasing, says the BBC's Gavin Hewitt in Athens.

On Friday evening, several thousand protesters took to the streets of Athens to demonstrate against further austerity measures.

The government's cost of borrowing on international markets has spiralled, making it prohibitively expensive for Greece to borrow money from investors to service its debt.

Athens had hoped that just the promise of EU support, agreed last month, would be enough to reassure markets and help its recovery.

But Greece's problems have continued to hit investor confidence in the euro and other European economies.

BBC
 

Buy on AliExpress.com

Bjerknes

"Top Economist"
Mar 16, 2004
111,508
Greece, open wide and prepare to get ASS F*CKED.

Greek 10-year bond yields. 8.84%? Simply nauseating.



Greece Credit Default Swaps (all time high).



DJ Greek Equities Index




Greece is cooked.
 

JBF

اختك يا زمن
Aug 5, 2006
18,451
Bank of Ireland has announced plans to raise 3.4bn euros (£2.9bn; $4.5bn) in order to help its recovery from the financial crisis.

The Irish Republic's biggest lender said it would raise up to 1.9bn euros through a rights issue.

The bank hopes to raise the rest of the money by placing shares with institutional investors, and through a debt-for-equity swap.

Bank of Ireland was told to raise 2.7bn euros by financial regulators in March.

The move is the latest stage in the recovery of the Republic's banking sector following a government bail-out in the wake of the global financial crisis.

Irish lenders were hit hard by the collapse in the property market, which saw billions of euros-worth of home loans go bad.

Last month, the government announced plans to inject more money into the banking system in order to further stabilise it, but no new government money was planned for Bank of Ireland.

It is currently 16% government-owned, and was asked to raise cash privately to meet new capital requirements.

It also needs compensate for losses on its bad loans that have since been transferred to the state-run "bad bank" - the National Asset Management Agency.

The bank's cash raising plans also involve a possible change to the government's stake in the bank.

Bank of Ireland plans to convert some of the government's preference shares - which give it certain privileges over ordinary shareholders - into ordinary stock.

That is expected to see the government's stake increase to up to 36.5%.

BBC
 

Bjerknes

"Top Economist"
Mar 16, 2004
111,508
From the newsfeed:

*GREECE SOVEREIGN CREDIT RATINGS CUT TO JUNK BY S&P

*S&P CUTS PORTUGAL RATINGS TO 'A-/A-2'; OUTLOOK NEGATIVE

All of the PIIGS are in the same boat and will sink together holding hands.
 

Bjerknes

"Top Economist"
Mar 16, 2004
111,508
Oh shit...

All of Europe is scrambling to issue new debt and refinance in advance of what more and more are seeing as a credit crisis soon to envelop not only the European periphery but its core as well. We all know what is happening in Greece and Portugal. It appears Italy may be next: the country sold €9.5 billion in 6 Month Bills at 0.814%, up dramatically from 0.568% just a month ago, on March 26. What is scariest is that the Bid To Cover on the auction tumbled from 1.56 at the previous auction to a just barely above passing 1.02. At this rate Italy will be unable to find bidders for its next Bill auction. And if it can't sell Bills, it can't roll the easiest part of its curve. Also, unlike Germany, Italy does not have the "flight to safety" appeal. Keep in mind that Italy, just like Greece, dipped freely in the Goldman debt/GDP swap "adjustment" mechanism. We are confident that as contagion fears grip Portugal, Italy is sure to be next. And confirming that the market is seeing Italy as an even greater risk than Spain, the country sold 1.7 billion euros of six-month securities to yield 0.736%, up from 0.482 percent on March 23. On the other hand, Spain has to sell €150 billion in euros in 2010: it has so far only sold 26% of this amount. We wish them best as they scramble to fill the quota.
http://www.zerohedge.com/article/it...y-failure-6-month-bill-yielding-higher-spains

In English... Italy is FUCKED.

But so is Europe.
 

Bjerknes

"Top Economist"
Mar 16, 2004
111,508
The Greek 2-year bond yield briefly hit 38% earlier this morning, which is 8 TIMES higher than EU expects to lend to Greece. :lol:

This disaster is not going to be contained to the EU, IMO.
 

Bjerknes

"Top Economist"
Mar 16, 2004
111,508
The situation right now looks very much like the Bear Sterns and Lehman days in 2008, but this time it is worse because we are dealing with sovereigns here.

Besides Germany, pretty much every EU member is in heaps of trouble.

Quite a long ways to go.
 

Bjerknes

"Top Economist"
Mar 16, 2004
111,508
Some folks on CNBC claim S&P will downgrade Ireland's credit rating next. They certainly might. And I don't trust much I hear on that channel usually.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 4)