greece in the spotlight after evoking selective default
Last Updated : GMT 23:10:07
Arab Today, arab today
Arab Today, arab today

Greece in the spotlight after evoking selective default

Arab Today, arab today

Arab Today, arab today Greece in the spotlight after evoking selective default

Athens - Afp

Greece heads to another EU summit next week on fresh aid for its debt-wracked economy after evoking -- before pulling back -- the thorny notion of a selective default that could unleash a eurozone storm. The term is understood to mean a pick-and-choose approach to a country\'s maturing debt, with a government arranging to delay repayment on certain obligations while continuing to fully honour others. But to many investors, and more importantly to credit rating agencies that have already demoted Greece\'s bonds to junk status, these are just semantics. A French plan for private banks to rollover Greek government bonds as they came due was effectively shot down this month when ratings agency Standard and Poor\'s said that such an arrangement would be tantamount to default. Fellow evaluator Fitch this week also warned that \"private sector involvement would likely be viewed as a sign of sovereign credit impairment and could trigger a rating default event.\" European officials have sought to square the circle and lighten Greece\'s crushing repayments timetable on its 350-billion-euro debt without triggering a horror scenario that could have unforeseen consequences for the troubled eurozone. The Dutch finance minister broke the ice this week by revealing that the 17 eurozone ministers \"did not exclude\" the notion during talks in Brussels. He was swiftly overruled by colleagues but later statements by the Belgian finance minister showed that the EU is still trying to tiptoe around the issue. \"There needs to be an absolutely voluntary (private sector) participation so that it is not seen as a default,\" he told AFP on Saturday. Greece itself seems torn on the issue, with its finance minister appearing to downplay the dangers before Prime Minister George Papandreou stepped in to condemn \"wordplay\" on the matter. \"The word selective default scares without reason,\" Finance Minister Evangelos Venizelos told reporters after Tuesday\'s Eurogroup ministerial summit. \"It is not a real event, it is not default. It is an evaluation by the three familiar rating agencies,\" he said, meaning Fitch, Moody\'s and Standard and Poor\'s. \"It does not on its own create a reality, nor does it activate the notorious CDS mechanism,\" Venizelos said, referring to credit default swaps that have gained in value in expectation of Greek insolvency. \"If we are calm and wise, if we have a plan and apply it, we can manage anything to our benefit, because all this ultimately leads to a more viable debt...all this is done to provide a solution,\" the minister said. Main opposition leader Antonis Samaras swiftly chastised Venizelos for even bringing up the issue of selective default. \"Just uttering the term could have disastrous results...and this is true for all its variants,\" Samaras said. And Prime Minister Papandrou said \"wordplay should not be allowed, in particular the deliberate confusion of terminology used by rating agencies in their reports with painful situations for the real economy.\" Regardless of the outcome, Greece officially entered \"uncharted territory\" this week, a senior banker told AFP. Greek officials this week held two days of talks with private creditors in Rome for a third time in less than a month. Eurozone nations will hold an extraordinary summit on July 21 in Brussels on ways to tackle the debt crisis. The problem, however, has spread: Ireland and Portugal have also had to be bailed out, while Italy and Spain are seen to be at risk given the strained state of their public finances. The EU and International Monetary Fund bailed out Greece in May 2010 with a package worth 110 billion euros ($160 billion) in exchange for a series of drastic austerity measures to stabilise its public finances. The package has had some success but Greece is still in serious difficulty and needs another bailout estimated to be around the same amount.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

greece in the spotlight after evoking selective default greece in the spotlight after evoking selective default

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

greece in the spotlight after evoking selective default greece in the spotlight after evoking selective default

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday