• Extension of EFSF loans from 7.5 years to 15 years
  • Interest rate lowered to 3.5% on new loans to Greece
  • EFSF will be able to intervene on a precautionary basis
  • ESFS will be able to buy bonds on secondary market
  • Calls for Marshall Plan of investment, growth stimulation for Greek economy

Nothing on selective default reported so far. EUR/USD firming.

  • UPDATE: Three options for private sector role remain on table
  1. Debt buyback
  2. rollover
  3. swap

So selective default not totally off the table…Bank tax seems not to be an option, based on this document. Why the don’t pick among the private sector options is unclear…