Eurozone ministers discuss cutting interest on Greek loans

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 editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes deeply in the value of knowing every tidbit of news. He has a background in journalism and was formerly the head of the markets team at the Canadian Economic Press. He is a graduate of Ryerson University and completed Level 1 of the CFA program. Adam lives in Montreal, follow him on Twitter: @FX_Button.

4 Comments

  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

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.