Eurozone ministers discuss cutting interest on Greek loans

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Reuters headlines, citing ‘EU official’

  • Ministers pausing from meeting to prepare new proposals
  • Discussing cutting interest on bilateral loans to 25 bps from 150 bps
  • Considering 10-year moratorium on interest payments from EFSF loan, would save 44 billion euros
  • Aim to bring debt-to-gdp to 120% in 2020
  • No decision yet on any of the topics

In interest concession is a huge, considering the countries who lent them the money have to pay interest on their debt.

At the end of the day, this has to be their last chance. If Greece comes asking for more money next year or fails to implement programs, time to pull the plug.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.


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Adam Button


  1. Sounds like another way to achieve haircut to me. Not sure how market will react to this if decided – likely risk off.

  2. Isn’t this essentially “more money for Greece”? Less interest received than originally expected equals more payout. It won’t sit well with those countries who insisted on ‘only more time, not more money’, would it?

  3. Adam, have you looked at the daily EUR/JPY chart lately? Earlier today, it came within a hair of the 61.8% retracement line in the sand (from the high of this past March to the low of July) and considering how its “I.-cloud” is beginning to catch up with its recent burning pace, the pair appears due for a rest (i. e., range trading between today’s high and last Tuesday’s low). What d’ya think?

  4. CNN cites unnamed Egyptian official saying there are now no plans to announce Gaza cease fire tonight


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