Fenech to attend urgent Eurogroup meeting
Finance Minister Tonio Fenech shall be attending an urgent Eurogroup meeting in Brussels tomorrow.
The meeting, for Eurozone finance ministers, will have a third go at resolving the Greece bailout issue.
Last Friday, Luxembourg President Jean-Claude Juncker, who will chair the meeting, said that a decision was of utmost importance.
Last Monday, the 17 Eurogroup nations and the International Monetary Fund failed to strike a deal on the financing of the necessary bailout for Greece.
Euro zone finance ministers, the IMF and ECB failed earlier this week to agree on how to get Greek debt down to a manageable level.
European paymaster Germany expressed optimism that a deal could be struck at that meeting. "I am very hopeful that we can reach a solution on the question of the payment of the Greece tranches on Monday," Chancellor Angela Merkel said
The finance ministers held a teleconference yesterday to prepare for tomorrow's meeting.
A senior source involved in the negotiations told Reuters that the IMF would now accept 124 per cent as a target but was dismissive of the gap amounting to only 10 billion euros.
A Greek finance ministry official said the ECB could relinquish 9 billion euros of profits on the Greek bonds it holds, as part of the measures to bring debt in 2020 down from a previous estimate of 144 per cent of GDP.
Other options include saving 8 billion euros from cutting the interest rate, extending maturities on Greek debt and spending 10 billion euros to buy back around 30 billion euros in debt at a deep discount.
Greece has already begun preparations for the buyback, which could be completed by the end of the year if euro zone finance ministers approve the move.
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Mario Scicluna
Nov 26th 2012, 09:20
@Paul Caruana
Probably it's Portugal next with 325% of GDP, next ones on the list will definately be Spain and the bailout for Spain would be 7 times the size of Ireland and at that moment all the bailout money will be gone! All this for the stubborness for a EU Political project which has resulted in a crippling failure!
http://www.youtube.com/watch?v=ez-88_hIrLY&feature=related
Jesmond Chetcuti
Nov 26th 2012, 08:43
Greece is a lost cause and everyone knows that....all the money that has been given to them will never be seen....and eventually Greece will have to leave the Euro...
Paul Caruana
Nov 26th 2012, 07:28
At this stage, we just have to grin and bear it...no one wants to risk the dissolution of the euro zone.....yet! You have to wonder what will happen once Spain asks for its bailout. How much money will the other euro zone countries have to put up? Will they ever agree to a total fiscal and monetary union, and do we really want this to happen? What if the batty EU exit brits are right after all?
John Attard
Nov 26th 2012, 06:47
I do hope he hold on to his guard. We should not give one cent to the Greeks. We have only one Greek investor here and he is creating hell for hundreds of lotto receivers and their employees. Greece should not be helped at all. Let s give some of their own medicine
Shaun Anthony Camilleri
Nov 26th 2012, 04:27
"..ECB could relinquish 9 billion [Euro] of profits on the Greek bonds... saving 8 billion [Euro] from cutting the interest rate, extending maturities on Greek debt and spending 10 billion [Euro] to buy back around 30 billion [Euro] in debt at a deep discount."
Basically another haircut put in finance talk. Greece cheated to join the Euro and therefore it should leave. NO MORE - OUT!
Jonathan Camilleri
Nov 25th 2012, 23:54
What if they find no solution?
Ronnie Callus
Nov 26th 2012, 07:47
Melt down.
Alexander Brincat
Nov 25th 2012, 21:50
Wait a second!! If we get a mere 0.25% - 1.5% max on our deposits it would be only fair for the ECB and other players to get a good haircut on their profits. There are obvious repercussions: the lending rates will crash across the board. Yet it will only effect the banking system and reverse a couple of years of exagerated profit making. Dont worry, there won't be bank failures. It is not allowed.
Paul Borg
Nov 25th 2012, 21:44
Its time to say ....enough !! NO MORE .
Alfred J. McEwen
Nov 28th 2012, 09:35
And it is also time enough to say...enough it`s time to leave the Euro zone and the EU !!
Please choose the reason of your report below: